Xumo TV, the Irvine-based video streaming service started by brothers Tim, Chris and Russ Vanderhook, is now owned by broadcasting and cable television giant Comcast Corp. (Nasdaq: CMCSA) after a deal reportedly worth more than $100 million.
The purchase was announced last week, following several months of speculation that a sale was imminent. Philadelphia-based Comcast bought the full company, including the stake owned by the Vanderhook brothers, Meredith Corp. (NYSE: MDP) and Panasonic, a Comcast spokesperson told the Business Journal.
The spokesperson declined to confirm a report by CNBC news, which is owned by Comcast, that the company paid more than $100 million for the Irvine firm. Colin Petrie-Norris will stay on as Xumo chief executive, according to the spokesperson.
Xumo’s Irvine headquarters, which has 55 employees, will stay at the Park Place office campus, a few blocks from John Wayne Airport.
Xumo will continue to operate as an independent business unit inside Comcast Cable, the company said.
Xumo was formed in 2011 and offers free, live, and on-demand streaming entertainment, news, sports and other programming and is available in 45 million U.S. households.
Their services, and those of competitors like Tubi and Vudu, are being increasingly used by TV viewers cutting the cord on their traditional cable services; they get to watch free content on their smart TVs, such as those built by fellow Irvine-based manufacturer Vizio, in return for sitting through ads.
On-Demand
“Xumo is your destination for free live and on-demand streaming entertainment. With over 190 different channels to choose from, you won’t get bored,” Xumo says on its website. “Tune in for newly launched music channels, breaking news, epic fails, stand-up comedy, sports, news coverage, and more.”
CNBC reported that “Comcast’s interest in Xumo stems from the company’s partnerships with smart TV manufacturers such as LG, Panasonic and Vizio. Comcast can use Xumo’s prime placement on smart TVs to market or showcase Xfinity and other Comcast services and can use its technology to build future streaming products.”
It is the latest major shift for the Vanderhook brothers, who own the digital advertising company Viant in Irvine. Tim is chief executive of Viant while Chris is chief operating officer.
The siblings in November bought back the 60% share of the company that had been held by Meredith Corp., a Des Moines, Iowa-based media conglomerate.
No purchase price was initially cited in that transaction, but Meredith disclosed in a February regulatory filing that it “sold its interest in Viant to its founders for $25 million.”
Time, Viant
The brothers had sold their stake in Viant to New York-based Time Inc. in 2016 for $87 million, regulatory filings indicate. Time’s stake in Viant was subsequently taken over by Meredith, which bought out Time in 2018.
Viant’s technology and database of consumer information are used to help ad buyers plan, create, execute and measure their digital advertising investments.
The latest moves add another notable chapter to the recent history of the Vanderhook brothers and Viant, a company perhaps best known for its 2011 purchase of social network Myspace, a $35 million transaction backed in part by singer and actor Justin Timberlake.
Since then, Viant has beefed up its advertising capabilities through a variety of new digital-focused product lines, changed hands several times, and also had a few name changes; it was previously called Interactive Media Holdings.
The company last year moved into a high-profile office building a few blocks from Xumo’s offices, at the corner of Michelson Drive and Jamboree Road—the city’s busiest intersection.
Founded in 1999, Viant has 11 offices across the U.S., including Los Angeles, Chicago, Atlanta, Detroit, and New York.
