Roku To Acquire Streaming Service Provider Frndly TV
Strategic acquisition will bring additional customer value with affordable subscription service offering live TV, on-demand video and cloud-based DVR
Roku, Inc. (NASDAQ:ROKU), the #1 TV streaming platform in the U.S.*, announced today that it has entered into an agreement to acquire Frndly TV, a subscription streaming service that offers live TV, on-demand video, and cloud-based DVR for an affordable price.
Based in Denver, CO, Frndly TV was founded in 2019. It offers subscribers access to more than 50 top-rated live TV channels, including A&E, Hallmark Channel, The History Channel, Lifetime, and more, as well as thousands of hours of on-demand content, starting at $6.99/mo. Subscribers also can record their favorite shows using Frndly TV's unlimited cloud-based DVR, as well as access any show or movie that has aired in the past 72 hours on live channels.
"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 team, including its experienced leaders, will stay on after the transaction closes.
"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."
In addition to Roku, Frndly TV will continue to be available on all platforms and devices where it's available today, including Amazon Fire TV, Android TV, Google TV, Apple TV, Samsung, Vizio, the web (and via Chromecast), and mobile (Android, iOS).
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.
*By hours streamed (Hypothesis Group: Dec 2024)
About Roku
Roku pioneered streaming on TV. We connect users to the content they love, enable content publishers to build and monetize large audiences, and provide advertisers with unique capabilities to engage consumers. Roku TV™ models, Roku streaming players, and TV-related audio devices are available in various countries around the world through direct retail sales and/or licensing arrangements with TV OEM brands. Roku-branded TVs and Roku Smart Home products are sold exclusively in the United States. Roku also operates The Roku Channel, the home of free and premium entertainment with exclusive access to Roku Originals, and the #2 app on our platform in the U.S. by streaming hours. The Roku Channel is available in the United States, Canada, Mexico, and the United Kingdom. Roku is headquartered in San Jose, Calif., U.S.A.
About Frndly TV
Frndly TV is the most affordable live TV streaming service in America. Starting at only $6.99/mo., Frndly TV offers 50+ top-rated live TV channels including A+E®, Hallmark Channel, The History Channel™, MeTV, Lifetime®, Hallmark Mystery, Game Show Network, Great American Family, The Weather Channel and more. Customers can also access thousands of hours of on-demand content, at no extra cost. Frndly TV delivers feel-good programming at an affordable price. For more information, visit frndlytv.com.
This press release contains "forward-looking" statements that are based on our beliefs and assumptions and on information currently available to us on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include but are not limited to those related to the benefits of Roku's announced acquisition of Frndly TV, including the ability to drive subscription growth; the timing of the acquisition; and the features, benefits, and availability of the Frndly TV service and the Roku platform. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Roku, Inc. files with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on Roku's website and are available from Roku without charge.
Roku is a registered trademark, and Roku TV is a trademark of Roku, Inc. in the U.S. and in other countries.
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Media Contacts
Kelli Raftery
Roku, Inc.
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Jack Evans
Roku, Inc.
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