VIX, the multi-platform Latino digital media company that reaches more than 34 million U.S. Hispanic unique users on its VIX.com, has acquired Pongalo and its Latino-focused advertising video on demand streaming services Pongalo NovelaClub, Pongalo TV and Moovimex. The trio of AVOD platforms recently passed 1 billion minutes watched so far this year and will now be key in VIX’s plan to launch its own TV AVOD service this year.
No terms were disclosed, but the cash and stock deal is for a reported low-eight figures. Pongalo, backed by Canyon Creek Capital, the Carlyle Group’s Revolution Studios, Digital Bridge Holdings and 500 Startup, is expected to continue to serve as a partner with Amazon for its expansions in Mexico and Latin America. Pongalo’s team is expected to join VIX to become VIX’s Los Angeles presence.
Pongalo’s streaming services are currently distributed across more than 30 different platforms and control a content catalog of 14,000 hours of owned, licensed and original content, making it the largest Spanish-language film and television library based in the U.S.
“The opportunity for AVOD with Latino audiences is immense,” VIX chairman and CEO Rafael Urbina said. “Our new VIX TV AVOD service, along with Pongalo’s great existing services, will create a marketplace of Latino digital media brands, all sold under one roof by the same advertising sales team,” he added of VIX, which employs about 150 advertising sales and other professionals across multiple offices including in Miami, Mexico and Brazil.
“We believe that VIX’s enormous audience and powerful ad sales team combined with Pongalo’s massive catalog and global distribution footprint provide an unfair advantage as the combined company seeks to dominate the Latino AVOD space on two continents,” Pongalo founder and CEO Richard Hull said. “With the recent consolidations of media companies and studios, the market now particularly rewards scale and profitability, and this transaction provides Pongalo with both. We’re thrilled to join the VIX family in what is a great outcome for Pongalo and its investors.”