Viacom buys free streaming service Pluto TV for $ 340 million

NEW YORK – (Business Wire) – Viacom Inc. (NASDAQ: VIAB, VIA) today announced that it has signed a final agreement to purchase Pluto TV, the leading free streaming television service in the United States, for 340 million dollars in cash.

Pluto TV was founded in 2013 and extends over 100 channels and thousands of hours of on-demand content spanning television and film, sports, news, lifestyle, comedy, comics, games and trending digital series. The ad-supported, internet-based TV service includes first-class programming from over 130 media networking partnerships, 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. Audiences flock billions of content memory every month on devices like Roku, Amazon Fire TV, Android TV, Apple TV, Chromecast and Sony PlayStation consoles, as well as embedded smart TVs from Samsung and Vizio and mobile apps on Android and iOS. Pluto TV has also secured new distribution agreements that will make the service available on several million more units in the coming months.

Strategic Highlights

The acquisition of Pluto TV will promote Viacom's key strategic priorities, including expanding its presence on next-generation distribution platforms and increasing its advanced advertising business. In addition, access to Viacom's global reach, leading brands and large, undeveloped libraries will help strengthen Pluto TV as a leader in the free streaming video market in the United States, and accelerate global growth of Pluto TV. The benefits of this transaction are:

• CREATING A SCALED D2C OFFER
  • Provides Viacom Direct Access to Millions of Consumers
  • Looks like a very important marketing machine to provide and retain consumers for Viacom's targeted subscription products, including Noggin and Comedy Central Now
  • Provides a new distribution outlet for Viacom Digital Studios content, beyond the existing Awesomeness TV channel on Pluto TV
  • Promotes Viacom brands and content living on other platforms such as pay-TV, theaters and beyond
• HOW TO COMPLETE ADVANCED MARKETING DECISION
  • Immediately adds billions of addressable, high-quality ad impressions that will enhance Viacom's ability to serve advertisers and their agencies
  • Brings an extra-young, gender-balanced and difficult audience to reach
  • ADDS IMPORTANT OFFER FOR DISTRIBUTION PARTNERS
    • Furthermore, Viacom's ability to work with distributors extends by adding a premium, free broadband service and other subscribers
    • Looks like customer acquisition and retention tools for specific tiers of pay-TV packages
    • Represents a significant opportunity for all types of distributors, including mobile operators
  • UNLOCKS VIACOM LIBRARY VALUE
    • Creates an incremental opportunity to make money from Viacom library product; more importantly, Viacom's current window programming will remain in the pay-TV ecosystem of its branded networks
    • Benefits of Viacom's Strategic Decision to Limit Licensing of Large Library Packages to the SVOD over the past two years
    • CREATE GLOBAL OPPORTUNITY
      • Delivering Viacom's international reach, infrastructure and capacity
      • In particular, Viacom sees a very convincing long-term opportunity to create a Spanish language offering that leverages Viacom International Media Networks & # 39 ; Library, both in the United States and Latin America
    • RENEW PLUTO TV'S LEADERSHIP IN FREE STREAMING TV
      • Strengthens key areas of Pluto TV's consumer offerings by including Viacom's content across children, African American, reality and comedy [1[ads1]9659008] Provides Pluto TV access Viacom's brands and marketing features to increase audience and usage
      • Gives added value to Pluto TV's existing content and distribution partners

    "Today, it is an important step forward in Viacom's development, As we work to move both our company and industry forward, 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, says Bob Bakish, Viacom President and CEO. "When the video market continues to segment, we see an opportunity to support the ecosystem by creating products on a wide range of price points, including free. In this respect, we see significant white space in the ad-supported streaming market, and are excited to work with the talented Pluto TV team and a wide range of Viacom partners to accelerate growth in the US and worldwide.

    Viacom's global footprint, portfolio of entertainment brands, deep content library and additional marketing resources will further enrich Pluto TV's product and consumer experience and provide a clear roadmap for international expansion.

    "Since its launch less than five years ago, and especially over the past year, Pluto TV has had an explosive growth and has become a category leader in free streaming TV," said platform TV CEO and co-founder Tom Ryan. "Viacom's portfolio of Global, iconic brands and IP, advanced advertising management 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. "

    Mr Ryan will continue to serve as CEO of Pluto TV, which will act as an independent subsidiary of Viacom upon termination of the transaction. The transaction is expected to close in the first quarter of 2019 and is subject to regular terms and conditions and regulatory approval. [19659002] Paul Hastings, Covington & Burling and Shearman & Sterling were legal advisors to Viacom Gunderson Dettmer and Hogan Lovells were legal advisors to Pluto TV and LionTree Advisors was financial advisor to Pluto TV.

    About Viacom ]

    Viacom creates entertainment experiences that drive conversation and culture around the world, through television, film, digital media, live events, goods and solutions, linking our brands to diverse, young and young at heart groups in more than 180 countries.

    For more information about Viacom and its businesses, visit www.viacom.com. Continue with Viacom news by following us on Twitter ( twitter.com/vi acom ), Facebook (facebook.com/viacom) and LinkedIn (linkedin.com/company/viacom).

    About Pluto TV

    Pluto TV is the leading free streaming TV service in America, delivering 100+ live and original channels and thousands of on-demand movies in collaboration with major television networks, movie studios, publishers, and digital media. companies. Pluto TV is available on all mobile, web and connected TV streaming devices, and millions of viewers tune in each month to watch premium news, TV shows, movies, sports, lifestyle and trending digital series. Headquartered in Los Angeles, Pluto TV has offices in New York, Silicon Valley, Chicago and Berlin.

    Contacts

    Karen Shosfy, Communications Director, Viacom
    [email protected]