A+E Networks is acquiring a strategic stake in entertainment media powerhouse IHQ, subject to regulatory approvals, as it commits to a major expansion of its footprint in South Korea.
Besides the acquisition, A+E will purchase two local channels -– FoodTV and TVIS -– which, via a partnership with IHQ and its majority shareholder, D’Live, will be widely distributed across a range of platforms to the market’s digitally savvy audience that includes more than 20 million homes.
TVIS and FoodTV are intended to be rebranded as A+E’s genre-defining global brands, HISTORY and Lifetime in 2017. With access to IHQ’s strong relationships with Korean talent and production capabilities, both channels will feature a significant pipeline of local original content alongside A+E’s blockbuster franchises.
A+E will launch digital content and products, and take advantage of Korea’s highly evolved digital ecosystem through its cooperation with IHQ. IHQ and A+E Networks will also work together to exploit regional growth opportunities for IHQ brands and content outside Korea.
“This is a broad and ambitious partnership that enables A+E Networks to create a content production engine across all platforms, and will provide growth opportunities across a region that is of critical strategic importance to us,” said Edward Sabin, executive managing director, International, A+E Networks.
“In addition, the acquisition and partnership underscore A+E Networks’ commitment to creating high-quality content and growing the relevance of the HISTORY and Lifetime brands among Korean audiences,” said Sabin.
YJ Jeon, CEO of IHQ and D’Live, said the deal was groundbreaking and unprecedented in the Korean media and content market.
“The alliance is also a major step forward for IHQ as it will help with our efforts to expand at the global level and enable IHQ to be more aggressive in expanding its content and media operations,” said Jeon. “Furthermore, we expect the strategic investment to further increase the potential value proposition of D’Live and IHQ.”