Mass media company Viacom agreed yesterday to pay $340m to acquire US-based online television streaming service Pluto TV, enabling corporates Sky, ProSiebenSat.1, UTA, Universal Music Group, Samsung Scripps and Windsor Media to exit.
Pluto operates an online platform with more than 12 million monthly active users that allows users to stream televisual content from more than 100 customised channels programmed by the company or its partners, through connected TVs or mobile apps.
Viacom said it is buying the company in order to enhance its presence in new distribution platforms and advanced advertising activities. Pluto TV in turn expects to utilise the content library of Viacom, whose properties include Paramount Pictures, MTV and Nickelodeon.
Bob Bakish, president and chief executive of Viacom, said: “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 US and all over the world.”
The acquisition comes after $51m in funding, $13m of which came in a 2014 series A round led by US Venture Partners (USVP) and backed by broadcaster Sky and UTA, the talent agency also known as United Talent Agency, as well as Chicago Ventures, Great Oaks Venture Capital and Luminari Capital.
Media group ProSiebenSat.1 led Pluto’s $30m series B round in 2016 at a $143m valuation, investing with Sky, mass media group Scripps Networks Interactive, Luminari, Chicago Ventures, USVP, Sallfort PrivatBank and Thirdwave Capital Partners.
Electronics manufacturer Samsung led an $8.3m round for the company in 2017 with a $5m investment through its Samsung Venture Investment Corporation unit. Record company Universal Music, film and TV content producer Windsor Media and Pritzker Group are also investors.
Paul Hastings, Covington & Burling and Shearman & Sterling provided legal advice to Viacom while Gunderson Dettmer and Hogan Lovells did the same for Pluto. LionTree Advisors was financial adviser for Pluto TV.
