NEW YORK – (BUSINESS WIRE) – Viacom Inc. (NASDAQ: VIAB, VIA) today announced that it has a definitive agreement to acquire Pluto TV, the leading free-streaming TV service in the US , has completed in cash for 340 million dollars.
Founded in 2013, Pluto TV broadcasts more than 100 channels and thousands of hours of on-demand content from the areas of television and movies, sports, news, lifestyle, comedy, cartoons, games and digital trends. The ad-supported, Internet-based TV service offers world-class programming from more than 130 partnerships with media networks, major movie and television studios and a wide range of digital content producers.
Today, Pluto TV has more than 12 million monthly active users, of which 7.5 million are on connected TVs. The audience is broadcasting billions of monthly content on devices such as Roku, Amazon Fire TV, Android TV, Apple TV, Chromecast and Sony PlayStation consoles as well as integrated integrations on Samsung and Vizio smart TVs, and on mobile devices from apps on Android and iOS. Pluto TV has also entered into new distribution agreements, which will allow the service to be deployed to tens of millions of additional devices in the coming months.
The acquisition of Pluto TV will drive Viacom's key strategy Priorities include expanding its presence on next-generation distribution platforms and expanding its advanced advertising business. In addition, access to Viacom's global reach, leading brands and a large, unrestricted library will help cement Pluto TV as the leader in free streaming video in the US and accelerate Pluto TV's global growth. Benefits of this transaction include:
- CREATING A SCALED D2C OFFER
- Providing Viacom direct access to millions of consumers.
- Serves as a very important marketing engine for the purchase and retention of consumers for Viacom's targeted subscription products, including Noggin and Comedy Central Now
- Provides a new distribution point for content from Viacom Digital Studios, through the existing AwesomenessTV channel on Pluto TV go out.
- Promotes Viacom's brands and content that lives on other platforms such as pay-TV, theaters and beyond
- MEANINGFULLY EXPANDS ADVANCED MARKETING SOLUTIONS BUSINESS
- Instantly adds billions of high-quality, addressable advertising impressions, further strengthening Viacom's ability to serve advertisers and their agencies.
- young, gender equal and hard to reach
- ADDS IMPORTANT OFFER FOR DISTRIBUTORS
- Extends Viacom's ability to partner with Distributors by adding a free premium service to broadband subscribers and other subscribers.
- Serves as customer acquisition and retention tool for certain levels of pay-TV packages
- Represents a significant opportunity for all types of distributors, including mobile operators
- UNLOCK VIACOM'S LIBRARY
- Creates an incremental way to monetize the Viacom Library product; Importantly, Viacom's Current Window Program Remains in the Pay-TV Ecosystem of its Brand Networks
- Benefits of Viacom's Strategic Decision to Limit the Licensing of Large Library Packages to SVOD in the Past Two Years
- OPENS GLOBAL OPPORTUNITY
- Prolongs the international reach, infrastructure and capabilities of Viacom
- In particular, Viacom sees a very attractive opportunity to create a bid in Spanish based on Viacom International Media supports network library in the US and Latin America
- ACCELERATES THE LEADERSHIP OF PLUTO TV TO FREE STREAMING TV
- Strengthens key areas of consumer Pluto TV offerings by leveraging Viacom content for kids, African Americans, reality and comedy and Marketing Capabilities of Viacom to Increase Target Audience and Use
- Gives added value to Pluto TV's existing content and distribution partners
"Today is an important step in the development of Viacom because we are working to make both our company and our business also advancing the industry forward. Pluto TV's unique and market-leading product, combined with Viacom's brands, content, advanced advertising capabilities and global reach, provides a great opportunity for consumers, partners and Viacom, "said Bob Bakish, President and CEO of Viacom. "As the video market continues to segment, we see an opportunity to support the ecosystem in creating products at a wide range of price points, including for free. To this end, we see significant advertising space in the ad-supported streaming market and look forward to working with the talented Pluto TV team and a broad range of Viacom partners to accelerate growth in the US and around the world.
Viacom's global footprint, entertainment brand portfolio, comprehensive content library and additional marketing resources will further enrich Pluto TV's product and consumer experience, providing a clear roadmap for international expansion.
"Since our launch less than five years ago And most of all, last year, Pluto TV has experienced explosive growth and has become the leading provider of Free Streaming Television," said Tom Ryan, CEO and co-founder of Pluto TV's International Reach It will enable Pluto TV to grow even faster and become a major force in TV streaming worldwide, and Viacom is the perfect partner to help us fulfill our mission to sustain the planet. "
Mr. Ryan will continue to serve as CEO of Pluto TV, which will operate as an independent subsidiary of Viacom upon completion of the transaction and is expected to close in the first quarter of 201
Paul Hastings, Covington & Burling and Shearman & Sterling served as legal counsel to Viacom, Gunderson Dettmer and Hogan Lov ells served as legal advisors to Pluto TV and LionTree Advisors as financial advisors to Pluto TV.
Viacom creates entertainment experiences that promote conversation and culture around the world. Through television, film, digital media, live events, merchandise and solutions, our brands connect with diverse, young and young at-large audiences in more than 180 countries.
For more information about Viacom and its companies, visit www.viacom.com. com Keep up to date with Viacom's news by joining us on Twitter ( twitter.com/viacom ), Facebook (facebook.com/viacom) and LinkedIn (linkedin.com/company/viacom) [19659005? About Pluto TV
Pluto TV is the leading Free TV service in America. It features more than 100 live and original channels as well as thousands of on-demand films in collaboration with major television broadcasters, film studios, publishers and digital media companies. Pluto TV is available on all mobile, web and connected TV streaming devices, and millions of viewers come in every month to watch premium news, TV shows, movies, sports, lifestyle and digital trend series. Headquartered in Los Angeles, Pluto TV has offices in New York, Silicon Valley, Chicago and Berlin.
Karen Shosfy, Vice President, Corporate Communications, Viacom