Comcast Corp. is in advanced talks to acquire video-streaming company Xumo LLC, according to The Wall Street Journal citing people familiar with the matter, as the cable giant prepares to launch its own streaming service.
Talks between the two companies are exclusive, and it is possible that negotiations could break down, some of the people said. Financial terms of the prospective deal couldn’t be learned.
Xumo is one of a handful of companies that offer a free, ad-supported video-streaming service across a range of internet-connected TVs. Others include ViacomCBS -owned Pluto TV, which was acquired for $340 million in January, and Tubi TV.
The potential acquisition would come as Comcast’s NBCUniversal prepares to launch its streaming service, Peacock, in April. Xumo could provide technical and business support for Comcast’s streaming efforts across its pay-TV service, Xfinity, Peacock and European pay-TV giant Sky, which Comcast acquired last year, some of the people said.
Xumo also powers free, ad-supported streaming services from other companies. It is used by LG Electronics Inc. for its free video product LG Channels. Xumo also repackages traditional TV content into new digital channels, a capacity that some traditional TV programmers have used as they transition to video streaming.
Comcast has said that Peacock, which will have a library of original content and classic shows such as “The Office,” would rely heavily on advertising rather than subscriptions.
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