MTV is acquiring digital marketing company Prodigia for £3.5bn in a deal worth around £1bn, the channel has announced.
The deal will see MTV spin out its global advertising operations into the new company, which will be headed up by former UK chief executive David Bate.
The news comes as the channel is considering how to adapt its digital marketing strategy to the digital era, which is increasingly focused on mobile and social.
The move comes amid a shake-up of the MTV family as the broadcaster is reportedly looking at moving its flagship channel from UK-based MTV2 to a US-based digital channel, with the news that the channel will be taking over the digital properties of its MTV Networks and MTV Networks UK.MTV said it will take over the operation of MTV Networks in a “comprehensive and strategic transition” and will also take over MTV Networks US from its parent company Viacom.
“Today, we are announcing the appointment of Prodigias global business development and strategic transformation team, and we are thrilled to join forces with MTV Networks,” said Adam McKay, CEO of MTV.
“Prodigia’s digital team has been at the heart of the company’s digital strategy for the past decade, and they will help us to build an ambitious digital marketing and content portfolio for the 21st century.”
We are looking forward to working with Prodigis team and helping them to deliver a high-quality digital brand experience for MTV.”MTV Networks, MTV Networks Worldwide and MTV Entertainment all operate in a joint venture that has been in place since 2014.”
The Prodigies global business will be run in partnership with MTV, which has been a cornerstone of our digital strategy,” said Bate in a statement.”MTV is one of the most successful entertainment brands in the world, with over 20 million monthly users.
It is also the largest digital content company in the UK, with millions of YouTube subscribers.
MTV Networks will continue to grow in value and deliver premium content for its subscribers and fans, while the company will expand its reach and reach beyond the UK to more countries around the world.
“The acquisition of Prodigy comes after MTV Networks, Viacomm and Viacotix were acquired by Viacomp in 2016.