Viaplay sells production outfit Paprika to management

Viaplay Group has sold Paprika Studios to the Central and Eastern European production group’s management team, led by CEO Ákos Erdős.

The Nordic firm revealed it was in discussions with the prodco’s management last month and it has now confirmed that the deal was completed late last week.

Paprika management said the company would retain its relationship with Viaplay, while also “deepening our cooperation with other international streaming providers from an even more favorable, independent position than before.”

It has already “initiated negotiations” to open new offices, in addition to its existing eight-country operating footprint.

Financial details have not been revealed but in December, Viaplay said the total purchase price was approximately SEK61.9m ($6m) on a cash and debt-free basis, corresponding to multiple of 6.0 EBIT (Earnings Before Interest & Tax) in 2022.

Paprika was acquired by Viaplay forerunner Modern Times Group in 2012 but was put up for sale last year as its Nordic parent attempted to keep the company afloat following a disastrous 2023 that saw its share price plummet.

The CEE producer operates across nine countries in the region and produces more than 600 hours of programming annually for broadcasters and streamers, with both scripted and unscripted on its slate.

The company has been behind shows including Polish Murderesses, remakes of formats ranging from Survivor to Love Island, and is also one of the regions biggest service providers.

Erdős said: “We have previously based our business strategy on the production of quality content. Our professional sophistication and commitment will be stronger than ever with the entry of the management as owners, whether it is entertainment, fiction, reality, documentary, cinema or even short-form content.”

Enrique Patrickson, Viaplay Group’s EVP, CFO and head of strategy and M&A, added that the MBO “was the [option] that created the greatest value for Viaplay Group’s shareholders and that enabled the sale to be completed quickly. We wish Ákos and his team every success in continuing Paprika Studios as an independent company.”

The sale of Paprika leaves Viaplay with only its in-house production operations, having sold the majority of its unscripted interests in 2021 to Fremantle, which now houses Strong Productions in Denmark, Norwegian outfit Monster and Swedish duo Baluba and Strix Television, among others.

Viaplay had earlier sold NENT Studios UK (fka DRG) to All3Media as part of a strategy to fuel Viaplay’s streaming efforts, which saw it launch in CEE, the US and across Europe.

Almost of all that plan has now been scrapped as it refocuses efforts on its core markets, with France’s Canal+ and Czech investment firm PPF now owning 29% of the company following a series of deals designed to deal with debt obligations.