Fox has agreed to acquire the ad-supported TV streaming service Tubi for USD 440 million cash. The company said the takeover will help strengthen its direct-to-consumer digital reach and engagement, especially among young people.
Tubi is available on more than 25 platforms in the US, offering over 20,000 titles and attracting more than 160 million hours of viewing each month. It offers films and TV programmes from over 250 content partners, including many of the major studios.
Fox expects to build on the company's capabilities in digital advertising, direct-to-consumer interfaces and personalization technology. Tubi will be able to fully leverage Fox's advertising and distribution relationships, as well as its national and local promotional platforms, to further augment the service's growth.
Tubi will remain an independent service within Fox. Fox said it does not plan to expand the Tubi offering through original content, but rather "in a cost-effective manner by leveraging our expertise in national and local news and sports programming".
The acquisition will be financed with proceeds from the completed sale of Fox's stake in Roku. The takeover is expected to close by the end of June, subject to regulatory approvals.
