Roku Inc. to Acquire Frndly TV: A Strategic Move in Live Streaming

Founded in 2019 and based in Denver, Colorado, Frndly TV has quickly established itself as a prominent player in the streaming industry. The service provides subscribers with access to over 50 live TV channels, including popular networks such as A&E, Hallmark Channel, The History Channel, and Lifetime, among others. Frndly TV also offers thousands of hours of on-demand content, starting at a competitive price of $6.99 per month. Additionally, users can utilize Frndly TV’s unlimited cloud-based DVR service to record their favorite shows and access content that has aired within the last 72 hours.

Roku's CEO and Founder, Anthony Wood, expressed enthusiasm about the acquisition, highlighting Frndly TV’s rapid growth and expertise in direct-to-consumer subscription services. "Frndly TV’s impressive growth and expertise in direct-to-consumer subscription services make it a compelling addition to Roku," Wood stated. "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."

The integration of Frndly TV into Roku’s ecosystem is poised to enhance the user experience by providing a broader selection of live and on-demand content, which aligns with the preferences of many consumers seeking affordable entertainment options.

Following the completion of the acquisition, Frndly TV’s current leadership team, including CEO and Co-Founder Andy Karofsky, will remain with the company. Karofsky expressed excitement about joining forces with Roku, noting that the partnership aligns perfectly with their mission of delivering quality entertainment at an affordable price. "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," said Karofsky.

Despite the acquisition, Frndly TV will continue to function as a standalone service. It will remain accessible on all platforms and devices where it is currently available, including Amazon Fire TV, Android TV, Google TV, Apple TV, Samsung, Vizio, and mobile devices. This ensures that existing subscribers will not experience disruptions in service as the two companies integrate.

The acquisition is anticipated to close in the second quarter of 2025, pending customary closing conditions. The total purchase price for Frndly TV is set at $185 million in cash, which includes a holdback of $75 million contingent on achieving specific performance goals over the next two years. This structured payment approach reflects Roku's strategic focus on long-term growth and performance metrics.

Roku's acquisition of Frndly TV marks a significant step in the evolving landscape of streaming services. By incorporating Frndly TV's offerings into its platform, Roku aims to strengthen its market position and enhance its value proposition for consumers looking for affordable live television options. As the streaming wars continue to intensify, this strategic move positions Roku well for future growth and competitive advantage in the dynamic digital entertainment space.