Roku has entered into an agreement to acquire Frndly TV, a subscription streaming service that offers live TV, on-demand video, and cloud-based DVR.
Based in Denver, CO, Frndly TV was founded in 2019. It offers subscribers access to more than 50 live TV channels, including A&E, Hallmark Channel, The History Channel, Lifetime, and more, as well as thousands of hours of on-demand content. Subscribers also can record their favourite 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.
