Raine Takes a Stake in 'Planet of the Apps' Creator

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January 16, 2018 3:49 AM

Since its inception eight years ago, the Raine Group has sought to invest in promising new content providers.

Now it is betting on Propagate Content, the company that created the first original series for Apple and Twitter.

Raine plans to announce on Tuesday that it has invested in Propagate, an independent studio led by the veteran television executives Ben Silverman and Howard T. Owens. Financial terms were not disclosed.

Though perhaps best known as the boutique investment bank that counts Sprint and Steve Ballmer as clients, Raine has also invested in nascent media companies. The firm took a stake in Vice six years ago, well before the media firm gained its current valuation of $5.7 billion, and has backed Jimmy Buffett’s Margaritaville and the fantasy sports site DraftKings.

Now it is investing in Propagate, the nearly 3-year-old company that created “Planet of the Apps,” a reality show pitting app developers against each other and starring Gwyneth Paltrow and will.i.am., for Apple, and “#WhatsHappening,” a look at the day’s trending topics, for Twitter.

The attraction: Propagate’s ambitions to create content for a new world of digital media and international platforms.

Propagate was founded by Silverman, who is best known as the former NBC Entertainment co-chairman and the television producer who brought “The Office” and “Ugly Betty” to the United States, and Owens, a former president of National Geographic Channels who previously helped create “The Biggest Loser” and the American version of “MasterChef.”

Propagate has focused on finding new sources for shows. Beyond “Planet of the Apps,” the studio has produced “Lore,” a show based on the podcast of the same name, for Amazon, and a remake of the series “Charmed” for CBS. It is also producing content in different regions, including a series in French for Netflix and a series in Spanish for Mexican broadcasters. Propagate is also creating partnerships with the likes of Paltrow and the singer Zac Brown for more content based on their brands.

“These guys think global from the very beginning, and the formats and shows that Ben and Howard have developed are some of the best examples of customizing content to different markets and cultures,” said Joseph Ravitch, a founder of Raine.

With the new cash, Propagate plans to continue expanding, particularly internationally and in digital content, Silverman said.

Raine joins A&E Networks in Propagate’s corner.

“This new investment will accelerate their growth and output of content and transform them into a powerhouse indie studio,” Nancy Dubuc, the chief executive of A&E, said of Propagate in a statement.

As part of the investment, two Raine executives — Ravitch and Erik Hodge, the head of the firm’s entertainment practice — will join Propagate’s board.

The New York Times

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