RedBird IMI acquires Warner Bros Discovery's All3Media for $1.45bn

The investment is RedBird IMI's largest yet and will increase its portfolio in media, entertainment and sport

Phoebe Waller-Bridge, centre, in a scene from Fleabag, one of the top shows produced by All3Media. Photo: Amazon Studios

RedBird IMI, a joint venture between RedBird Capital Partners and Abu Dhabi's International Media Investments, has agreed to acquire film production company All3Media for £1.15 billion ($1.45 billion), its largest investment to date.

The investment is RedBird IMI's fifth since its inception in December 2022 as the company, which has global offices including Abu Dhabi and Dubai, continues to boost its portfolio in media, entertainment and sport.

RedBird Advisors acted as financial adviser to RedBird IMI and RedBird Capital Partners, and Gibson, Dunn & Crutcher acted as its legal adviser. JPMorgan acted as financial adviser to Warner Bros Discovery and Liberty Global, and DLA Piper acted as their legal adviser.

RedBird IMI is a joint venture between RedBird Capital Partners, which manages approximately $10 billion in assets globally, and global media company IMI, which owns The National, Sky News Arabia, Al Ain News and CNN Business Arabic, as well as a minority stake in Euronews.

All3Media was acquired from its joint owners, US film major Warner Bros Discovery and London-based Liberty Global, which also has stakes in entertainment companies ITV, Lionsgate and Televisa Univision.

London-based All3Media has 50 production labels under its portfolio, including Studio Lambert, Raw, Two Brothers Pictures, Silverback Films, New Pictures and Neal Street Productions, and has produced popular global shows, including Fleabag, The Traitors and the reality series Squid Game: The Challenge, based on the Netflix hit.

Jeff Zucker, chief executive of RedBird IMI, will assume the role of chairman of the All3Media board, while Jane Turton and Sara Geater will remain in their roles as chief executive and chief operating officer, respectively.

“All3Media is one of the world's great content companies and this gives us an incredible platform to continue to grow our expanding portfolio,” Mr Zucker said in the statement.

“The demand for new shows and ongoing series, both scripted and unscripted, makes All3 a perfect fit for us. And we would not be doing this if not for the tremendous confidence we have in the outstanding All3Media management team."

The media and entertainment sector is going through a significant transition in the digital age, with companies introducing more services to cater for consumers who require more on-demand and personalised content.

The industry is projected to hit nearly $3.5 trillion by 2028, from an estimated $2.7 trillion this year, growing at a compound annual rate of 7 per cent, data from The Business Research Company shows.

Joining forces with RedBird IMI "is an exciting next step for us as we continue to build All3Media", Ms Turton said.

"Our strategy remains to work with the world’s best talent, developing and producing high quality, popular programmes and RedBird IMI’s support and investment will be key in helping us deliver this."

RedBird IMI's other investments include those in Media Res, EverWonder Studios, Hidden Pigeon Company and Front Office Sports.