Fox Corporation (Nasdaq: FOXA, FOX) is to acquire Tubi, a provider of free ad-supported streaming service, for approximately $440m.
The transaction, which is subject to regulatory approvals and the satisfaction or waiver of customary closing conditions, is expected to close before June 30, 2020.
The acquisition of Tubi will enable FOX to enhance direct-to-consumer digital reach and engagement. Tubi brings to FOX an expanded consumer offering with a sizable, younger-skewing and directly connected user base that spends over 160 million hours per month watching content on the service. It will also integrate with and enhance FOX’s capabilities in key areas such as digital advertising, direct-to-consumer interfaces and personalization technology. Similarly, Tubi will be able to fully leverage FOX’s advertising and distribution relationships, as well as its national and local promotional platforms, to further augment the service’s growth trajectory. FOX plans to continue to run Tubi as an independent service anchored by its consumer offering of licensed entertainment content.
Tubi, which is currently available on more than 25 digital platforms in the United States, features over 20,000 titles and 56,000 hours of film and episodic television programming from over 250 content partners, including many of the major studios. Founder and CEO Farhad Massoudi will continue to head Tubi.
FOX will finance the acquisition principally with the net proceeds from the completed sale of its stake in Roku, Inc.