Hemisphere Media Group said it is acquiring the remaining 75% stake of Pantaya, the U.S. Hispanic subscription video streaming service, from Lionsgate for about $124 million in cash.
Pantaya was launched in August 2017 through a joint venture between Hemisphere and Lionsgate; previously, Hemisphere owned 25% of Pantaya. Currently, Pantaya has about 900,000 paying subscribers — and Hemisphere expects its subscriber base to grow to 2.5 million to 3 million by the end of 2025. Pantaya’s service starts at $5.99 per month
Under the agreement, Hemisphere will maintain a strategic content relationship with Lionsgate and Starzplay, the international premium subscription service of Lionsgate’s Starz,that encompasses Spanish-language movie and television co-productions. In addition, Pantaya will continue licensing Spanish-language content from Lionsgate’s 17,000-title film and television library.
Pantaya’s content library includes original titles from its Pantelion production arm, as well as titles from major producers and distributors, including Hemisphere, Lionsgate and Televisa.
Hemisphere plans to increase investment in Panatay’s content, expanding the output of series and movies, with the goal of “becoming a ‘must have’ entertainment option for the large and growing U.S. Hispanic audience,” Hemisphere CEO Alan Sokol said in a statement.
L.A.-based Pantaya will continue to be led by CEO Paul Presburger.
Hemisphere’s stock rose 3.4% Thursday on the news, trading at $12.04 per share in morning trading.
Hemisphere said it is funding the acquisition through cash on hand, as well as $50 million via an incremental term loan under the company’s credit facility. Separately, the Company has put in place a $30 million corporate revolving credit facility, which will be undrawn at the time of closing the acquisition.
“We’re very proud to have helped build Pantaya into the leading premium Spanish-language platform in the U.S., and Hemisphere is the right owner to continue their growth and success,” Lionsgate COO Brian Goldsmith said in a statement. “We look forward to an even more robust strategic content relationship among Lionsgate, Starzplay and Pantaya that benefits Pantaya’s continued ascendancy.”
Hemisphere Media, based in Miami, owns and operates five leading U.S. Hispanic cable networks, two Latin American cable networks, and a broadcast TV network in Puerto Rico. It also has ownership interests in a broadcast television network in Colombia and a Spanish-language content distribution company.
