Roku is making a significant acquisition that will propel it further in the content space.
The streaming platform says that it is acquiring the subscription streaming service Frndly TV in a deal valued at $185 million. The deal, which should be completed in Q2, will give Roku a foothold in the subscription streaming market and vMVPD sector, complementing its free Roku Channel.
Frndly blends aspects of virtual multichannel video providers like YouTube TV with on-demand entertainment programming, with a focus on family-friendly fare. It streams channels that include Hallmark, History, Lifetime and A&E. Its plans start at $6.99 per month.
“Frndly TV’s impressive growth and expertise in direct-to-consumer subscription services make it a compelling addition to Roku,” said Anthony Wood, Roku’s Founder and CEO. “This acquisition supports our focus on growing platform revenue and Roku-billed subscriptions, with a live content offering our users love at an industry-leading price point.”
“We’re incredibly excited to join Roku and continue our mission to provide customers feel-good, quality entertainment as the most affordable live TV subscription streaming service in America,” adds Andy Karofsky, Frndly TV CEO and co-founder. “Roku’s pioneering role in streaming and its longstanding commitment to customers aligns perfectly with our strategic vision. We believe this combination will help us accelerate subscription growth, given the alignment in core customer demographics and Roku’s leadership position in the connected TV ecosystem.”
The $185 million deal includes $75 million which is being held back for an earn-out over the next two years.
The deal was connected to Roku’s Q1 earnings report, which saw revenue rise by 16 percent to $1.02 billion, and a net loss of $27.4 million.
