The SpringHill Company and Fulwell 73 have confirmed their merger and raised $40M from existing investors as they attempt to build clout in a challenged content market.

LeBron James' production firm The SpringHill Company has agreed to merge with Fulwell 73, the U.K.-based production company behind "The Kardashians," the firms said Monday. Why it matters: The deal gives both companies scale and global reach at a time when the entertainment industry is under enormous pressure to evolve.

Maverick Carter and Ben Winston break down what the just-announced deal means for their companies: "I think in this industry right now, if we stand still, we'll be left behind," Winston says.

Fulwell 73, which is behind plans for a £450m film studio in Sunderland, is to be merged with The SpringHill Company, a business founded by basketball legend LeBron James

Big moves only for LeBron James’ and his entertainment company, SpringHill Co. Reports are coming in that the entertainment powerhouse is merging with Fulwell 73, the British production company behind huge hits like The Kardashians and Carpool Karaoke. Sheesh.

Fulwell 73, the company behind Hulu’s The Kardashians, and The SpringHill Company, which was founded by NBA legend LeBron James, are in talks to merge. Deadline has confirmed the news, broken by Bloomberg,

The tie-up is backed by heavy hitters including Liverpool FC owner Fenway Sports Group, in which James (pictured) holds a small stake.

New changes are underway at LeBron James’ media company. Bloomberg previously reported that the SpringHill Co., owned by James and Maverick Carter, had been in talks for several months with Fulwell 73,