November 20, 2014
Recently a leading European entertainment network, RTL Group, made moves to go deeper into the Los Angeles tech startup ecosystem when they acquired StyleHaul for $107 million US. RTL Group will also invest $20 million US into StyleHaul in order to fund the company’s growth.
In addition, the parties have agreed to earn-out mechanisms that might increase the initial consideration, subject to the future performance of the business. Under the terms of the deal, RTL Group has the opportunity to acquire the remaining equity, owned by StyleHaul’s management and employees.
With this agreement, RTL Group is hoping to accelerate their rapidly growing presence in the online video space and its position in North America. For the full year of 2014, RTL Group expects to more than double its online video views to around 40 billion.
“The acquisition of StyleHaul is another major strategic step in developing RTL Group into a global powerhouse in the rapidly growing market for online video,” says Anke Schäferkordt, co-CEO of RTL Group. “StyleHaul has a first-class management team that built up the only multi-channel network of scale with a clear focus on the fashion and beauty segment, and has a highly engaged audience – a very compelling proposition for major brand advertisers.”
StyleHaul was founded in 2011 by Stephanie Horbaczewski, a former Marketing Director at Saks Fifth Avenue. With more than 900 million video views per month, StyleHaul is currently the leading multi-channel network on YouTube for fashion and beauty, and a pioneer in branded content.
“StyleHaul is an excellent fit with our digital portfolio, complementing our recent, technology-focused acquisitions BroadbandTV and SpotXchange. With its strong advertising sales team, impressive track record in producing web content and the synergy potential with RTL Group’s broadcasters and producers, StyleHaul has the ideal foundations for continued strong growth,” says Guillaume de Posch, co-CEO of RTL Group.
In 2013, RTL Group made initial investments in StyleHaul. Since then, StyleHaul has worked closely with RTL Group’s content production arm, FremantleMedia, whose North-American digital studio, Tiny Riot, produces exclusive premium content for StyleHaul, including the talk show The Crew which has more than 4.5 million views to date.
“For the past two years the partnership between StyleHaul and RTL Group has played an integral role in our success and growth,” says Horbaczewski, founder and CEO of StyleHaul. “This opportunity allows the unwavering passion and dedication of the StyleHaul team and ground-breaking community of influencers to accelerate all aspects of our business and we are very excited about what we will accomplish together with RTL Group.”
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