Viu, the video streaming unit of Hong Kong billionaire Richard Li’s PCCW, is selling a 26.1% stake for up to $300 million to Canal+, the pay-TV group controlled by French billionaire Vincent Bolloré’s media conglomerate Vivendi.
Canal+ has made an initial payment of $200 million for the stake, the two companies said in a statement on Wednesday. The equity investment could reach $300 million if certain financial targets are met. Following the transaction, Canal+ will have the option to increase its stake in Viu to 51%, according to the statement.
The deal will enable Viu to grow its content offerings, user base and global footprint, while allowing Canal+ to expand its presence in Asia. Canal+’s current subscribers are mainly based in France and Africa.
“We are very pleased to embark on a partnership with Canal+ to take Viu to the next level with the prospect of global synergies coming from both Canal+ and PCCW,” Susanna Hui, PCCW’s acting group managing director, said in the statement.
“With Viu having established its leadership as a pan-regional streaming service, we believe this is the right time to introduce a strategic partner into the business that would see us furthering our global expansion and growth by unleashing the potential of the Viu business at scale and to create further value for our shareholders,” she added.
Viu was launched in 2015 under PCCW, Li’s flagship telecommunications, media and technology conglomerate. It has since grown to become one of the leading video streaming platforms in Southeast Asia, with offerings of Korean and original content. The company said it has attracted 12.2 million paid subscribers and 66.4 million monthly active users across Asia, the Middle East and South Africa during 2022.
Viu is headed by Janice Lee, who made Forbes Asia’s Power Businesswomen list in 2021. Viu overtook Netflix in 2021 to become the second-largest streaming service by paying subscribers in Asia, behind only Disney+, according to researcher Media Partners Asia.
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