Roku to acquire US subscription streaming platform Frndly TV for $185m

Roku is set to acquire Frndly TV, a Denver-headquartered subscription streaming service offering live television, on-demand video and digital video recording, for US$185m.

Anthony Wood

Collision Conf via CC

Frndly TV, founded in 2019, is a subscriber service with access to around 50 live TV channels, including A&E, Hallmark Channel, The History Channel and Lifetime and thousands of hours of on-demand content. Its various subscription tiers start at US$6.99 a month.

Roku founder and CEO Anthony Wood said Frndly TV’s “impressive growth and expertise in direct-to-consumer subscription services make it a compelling addition.”

He added that the acquisition supports Roku’s focus on growing platform revenue and Roku-billed subscriptions.

The transaction is expected to close in the second quarter, provided customary closing conditions are met. Of the US$185m total, US$75m is held back and tied to Frndly TV meeting “performance goals and milestones” over the next two years.

The Frndly TV team will remain in place once the acquisition closes, said Roku, while the service will continue to be available on all platforms on which it is currently carried, including Amazon Fire TV, Android TV, Google TV, Apple TV, Samsung, Vizio and Roku.

“Roku’s pioneering role in streaming and its longstanding commitment to customers aligns perfectly with our strategic vision,” said Andy Karofsky, Frndly TV CEO and co-founder.

“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.”