Roku Inc., the streaming platform with a publicly traded stock on the Nasdaq market, has entered into an agreement to acquire Frndly TV, a subscription streaming service that offers live TV, on-demand video, and cloud-based DVR offerings.
The acquisition is expected to be completed in the second quarter, pending customary closing conditions. The total purchase price is $185 million in cash, which includes $75 million held back that is tied to meeting performance goals and milestones over the next two years.
Based in Denver, six-year-old Frndly TV offers it users access various “live TV channels.” But, these are MVPD-distributed cable channels, including A&E, Hallmark Channel, The History Channel, and Lifetime. The $6.99 per month fee also brings on-demand content.
Why did Roku decided to buy Frndly TV, which doesn’t exactly have household name recognition across the U.S.?
“Frndly TV’s impressive growth and expertise in direct-to-consumer subscription services make it a compelling addition to Roku,” said Anthony Wood, Founder and CEO of Roku, Inc. “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.”
Frndly TV’s leadership team will remain in place following the completion of the transaction.
“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,” said 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.”
Frndly TV will continue to be available on Amazon Fire TV, Android TV, Google TV, Apple TV, Samsung, Vizio, the web (and via Chromecast), and mobile (Android, iOS).
