Viacom Acquires Streamer Pluto TV

Viacom is acquiring the free streaming platform Pluto TV, which delivers more than 100 channels and a raft of on-demand content, for $340 million in cash.

For Viacom, the acquisition allows it to create a scaled direct-to-consumer offering, with access to Pluto TV’s 12 million monthly active users. The platform can be used as a marketing engine for Viacom’s subscription products, including Noggin and Comedy Central Now, and as a new outlet for Viacom Digital Studios’ content. The acquisition is also intended to expand the digital offerings Viacom can offer advertisers. In addition, owning Pluto TV will build on Viacom’s ability to partner with distributors by adding a premium, free service for broadband-only and other subscribers, and the platform can serve as a customer acquisition and retention tool for certain tiers of pay-TV packages. Viacom can also use the service as an additional tool for monetizing its library product, while its current programming will remain in the pay-TV ecosystem on its branded networks.

Pluto TV, meanwhile, can leverage Viacom’s international reach for global expansion. Viacom sees an opportunity to create a Spanish-language offering for the U.S. and Latin America.

“Today marks an important step forward in Viacom’s evolution, as we work to move both our company and the industry forward,” said President and CEO Bob Bakish. “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. As the video marketplace continues to segment, we see an opportunity to support the ecosystem in creating products at a broad range of price points, including free. To that end, we see significant white space in the ad-supported streaming market and are excited to work with the talented Pluto TV team, and a broad range of Viacom partners, to accelerate its growth in the U.S. and all over the world.”

“Since our launch less than five years ago, and particularly over the past year, Pluto TV has enjoyed explosive growth and become the category leader in free streaming television,” said Pluto TV CEO and Co-Founder Tom Ryan. “Viacom’s portfolio of global, iconic brands and IP, advanced advertising leadership and international reach will enable Pluto TV to grow even faster and become a major force in streaming TV worldwide. Viacom is the perfect partner to help us accomplish our mission of entertaining the planet.”

Ryan will continue to serve as CEO of Pluto TV.