Viacom's Viacom International Media Networks unit has reached a definitive agreement to acquire a majority stake in Porta dos Fundos, a Brazilian shortform comedy content producer.
Financial terms of the deal, which will further expand the company's scale in Latin America and strengthen its content creation pipeline, weren't disclosed.
Porta dos Fundos, founded by Fabio Porchat, Antonio Tabet, Joao Vicente de Castro, Ian SBF and Gregorio Duvivier in 2012, is known for creating shortform comedy sketches and TV programming.
The Porta dos Fundos YouTube channel is among the top 10 most subscribed entertainment channels globally with more than 13 million subscribers. It recently surpassed 3 billion video views, making the company the fifth-most-viewed Brazilian video producer on YouTube.
Pierluigi Gazzolo, president of VIMN Americas, who will oversee the business, said: "As we continue to build scale in the Latin American region, our investment in Porta dos Fundos furthers our commitment to the Brazilian market and increases our ability to create innovative content, often native to digital platforms, which will complement our existing Viacom brands and capabilities."
He added: "The talent and creativity showcased by the founding members of Porta dos Fundos in building this brand is impressive, and we are excited to join forces to expand its presence outside of Brazil via our highly successful network of brands around the world. We firmly believe that content ownership is a key driver of success and are happy to add this new dimension to our portfolio."
Tereza Gonzalez, CEO of Porta dos Fundos, said: "The partnership with VIMN couldn't make us happier. The venture is a big step for the group towards expanding into the international market, with new global opportunities for our portfolio both on and offline. Additionally, the deal provides exceptional distribution channels for our content."
The deal fits Viacom's strength in the comedy genre with Comedy Central. The two companies previously worked together on the co-production of Portatil, a five-part series that showcased Porta dos Fundos' theater show and aired on Comedy Central Brazil in 2016.
Viacom's portfolio in Brazil now includes seven branded pay TV networks, authenticated TV Everywhere mobile applications, on-the-ground events and experiences and consumer products. VIMN has maintained a local office in Sao Paulo since 1998.
VIMN has been active in terms of deals in Latin America. It recently also acquired the No. 1 free-to-air channel in Argentina, Telefe.