SAN JOSE, Calif.—Roku said it will acquire Frndly TV, a virtual multichannel video programming distributor (vMVPD) geared toward family friendly content that offers live TV, on-demand video and cloud-based DVR.
The deal, for $185 million in cash, is expected to be completed in the second quarter pending customary closing conditions. The sale price includes includes $75 million that will be paid Frndly TV meets performance goals and milestones over the next two years.
Denver-based Frndly TV, founded in 2019, offers more than 50 top-rated linear pay TV channels, including A&E, Hallmark Channel, History and Lifetime, as well as thousands of hours of on-demand content, starting at $6.99 per month. Subscribers also can record their favorite shows using Frndly TV’s unlimited cloud-based DVR and access any show or movie airing 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,” Roku Founder and CEO Anthony Wood said. “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 management team will stay on after the deal 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,” Frndly TV CEO and Co-Founder Andy Karofsky said. “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).
