Streaming developer Roku has inked an agreement to acquire wallet-friendly pay television provider Frndly TV, the companies announced on Thursday.
Roku’s Chief Executive Officer Anthony Wood said Frndly TV’s focus on delivering premium entertainment channels from partners like A+E Global Media, Weigel Broadcasting and the E. W. Scripps Company at a low price point made it an attractive offering for the streaming hardware and platforms developer.
“Frndly TV’s impressive growth and expertise in direct-to-consumer subscription services make it a compelling addition to Roku,” Wood said in a statement. “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.”
Roku will spend $185 million in cash to acquire the service, which includes $75 million that is tied to performance-based goals and milestones achieved over the next two years. The transaction is expected to close within the next few weeks.
Frndly TV’s executive team will move over to Roku once the acquisition is complete. The service itself will remain based in Denver.
“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,” Andy Karofsky, the co-founder and CEO Frndly TV, said in a statement. “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.”
Roku said Frndly TV will continue to be available on competing platforms like Amazon’s Fire TV, Google TV (Android TV), Apple TV, Samsung and Vizio for the foreseeable future.
