Comcast has officially purchased Xumo, the ad-supported streaming service owned by Panasonic and Meredith Corp. Reports that Comcast is in talks to acquire the platform, which pulls streams from partners like ABC News, Fox Sports and USA Today, first surfaced late last year. Now that the acquisition is official, a spokesperson told Variety that the Xumo team, presumably with all current 55 employees, will be joining the company.
"We are excited for this team to join Comcast and look forward to supporting them as they continue to innovate and develop their offerings," the spokesperson said. Xumo will be operating as an independent business within Comcast, though it will be overseen by the cable giant's senior VP Rebecca Heap.
While the terms of the acquisition weren't revealed, CNBC says Comcast paid at least 100 million for Xumo. As the publication notes, the company could use Xumo's prime placement on smart TVs, including models from Panasonic and Vizio, to advertise its Xfinity internet services to cable cutters. It could also build streaming products on top of its technology.
Whatever its reason is, Comcast is merely one of the media giants snapping up free ad-supported streaming services to tack onto their businesses. Viacom purchased streaming startup Pluto TV last year. And even the Comcast-owned NBCUniversal is reportedly in the midst of negotiations with Walmart to purchase Vudu even as it prepares for the launch of its Peacock streaming platform.