Viacom has acquired streaming video service Pluto TV for $340 million.
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.
“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. “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.”
Already established in the US, where it streams over 100 channels covering independent film, sports and entertainment, the AVoD launched in the UK last October.
It’s thought Viacom intends to use Pluto to monetise its library content through ad-supported streaming, as well as give additional distribution to content from its Viacom Digital Studios subsidiary.