Fox has agreed to buy streaming service Tubi TV for $440 million, according tomedia reports. After selling 21st Century Fox to Disney, the company still owns the Murdoch family’s remaining television, cable sports and media assets.
Tubi was once part of a free ad-supported streaming service that now has a shrinking number of users. According to a statement, Tubi will bring a new digital consumer service to Fox, which will apparently be aimed at younger users, who spend about 160 million hours on entertainment on the platform.
Fox said it would integrate digital advertising, direct-to-consumer capabilities and personalization technology into Tubi’s advertising platform.
“Tubi will immediately expand our direct-to-consumer audience and capabilities, and will provide our advertising partners with more opportunities to reach a larger audience,” Fox CEO Lachlan Murdoch said in a statement. Importantly, coupled with Fox’s existing network strength, we will drive long-term growth directly to the consumer sector based on Tubi, which provides a solid foundation. “
Tubi CEO Farhad Massoudi will continue to lead Tubi, who said Fox’s relationship with advertisers and distributors will greatly drive his company’s growth.
Fox will pay for the acquisition of Tubi with the proceeds from the sale of its 5 per cent stake in Roku, another advertising-backed streaming company.
It will be interesting to know how Fox will adjust its programming, mainly from Warner Bros., Paramount, Lionsgate and NBCUniversal.
The acquisition makes Fox the second-largest U.S. acquisition of ad-backed streaming services, after Viacom, which bought streaming service Pluto TV for $340 million in January.