LeBron James' SpringHill merges with Fulwell 73, behind The Kardashians, in a deal worth $40 million, expanding global content reach.

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.

Existing shareholders such as RedBird, FSG and Nike will invest US$40m to fuel combined production company's growth initiatives.

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.

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