The company was founded in 1994 by Franz Koch and Klemens Kundratitz. Koch Media's parent company, Koch Media Holding, was acquired by Swedish holding company Embracer Group in February 2018. Koch Media was founded in 1994 by Franz Koch and his business partner, Klemens Kundratitz to market and distribute software. Koch Media operated out of offices in Germany and Austria, while a regional subsidiary, Koch Media Ltd., was opened in England. In 1995, Koch Media sold more than 250,000 software licenses, and in 1996, the company began distributing video games. Another regional subsidiary, Koch Media AG, was formed in Switzerland in 1998. A holding company, Koch Media Holding, was established in 2000 to unite Koch Media's business areas. The same year, Koch Media srl was formed as a regional subsidiary for Italy. In 2002, Koch Media established Deep Silver as a video game publishing division to "complement games that was distributing". A film division, Koch Home Entertainment, was announced in June 2003 and formally formed in early October. SG Diffusion was renamed Koch Media SAS in January 2006. The same month, Koch Media acquired Proein, the Spanish distribution arm of SCi Entertainment, to undisclosed terms.