Viacom Acquires Free Streaming Service Pluto TV for $340 Million
Viacom purchases Pluto TV to expand its presence in the ad-supported streaming market and reach consumers across various price points.
Viacom acquires the free video streaming service Pluto TV for $340 million in cash to expand its digital footprint. Viacom CEO Bob Bakish states that this combination merges Pluto TV's unique product with Viacom's extensive brands, content, and global scale. The companies aim to capitalize on significant opportunities in the ad-supported streaming market by offering products at various price points, including free options.
Pluto TV operates as an independent subsidiary under Viacom following the acquisition. Co-founder and CEO Tom Ryan remains in his leadership role to guide the platform's continued expansion. Ryan highlights that Viacom's iconic intellectual property, advertising technology, and international reach provide the perfect partnership to accelerate Pluto TV's mission of entertaining the planet.
The deal represents a major financial victory for Pluto TV's venture capital backers. Investors such as USVP, Sky, and Scripps Networks Interactive originally poured $51.8 million into the streaming startup since its founding less than five years ago. This strategic purchase allows Viacom to capture a younger, digital-first audience while giving Pluto TV the resources to grow rapidly across the United States and international markets.