Viacom acquires Pluto TV streaming service for $340 million2019-01-23 16:42 by Daniela
Tags: Viacom, Pluto TV
Cable giant Viacom is buying the ad-supported streaming startup Pluto TV for $340 million in cash, with plans to turn it into the home for its slew of programmes.
For Viacom, the acquisition of Pluto TV is all about getting direct access to millions of consumers, many of whom will be younger than a typical pay-TV subscriber. As well as earning money from its existing back-catalogue through serving ads, Viacom is also hoping that Pluto TV will serve as a new way to promote and market its paid subscription products, which include Noggin and Comedy Central Now.
"Today marks an important step forward in Viacom's evolution, as we work to move both our company and the industry forward," said Viacom CEO Bob Bakish in a statement. "Pluto TV's unique and market-leading product, combined with Viacom's brands, content, advanced advertising capabilities and global scale, creates a great opportunity for consumers, partners and Viacom."
PlutoTV runs shows from Discovery, Viacom's AwesomenessTV and news content from several broadcast networks, including NBC and CBS. The start-up splits ad revenue with the networks.
The deal is expected to close in the first quarter, and Viacom plans to run Pluto as an independent subsidiary going forward. Pluto TV CEO Tom Ryan will stay on as the head of the subsidiary.
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