Fox Company pronounces settlement to amass Tubi
Fox acquires Tubi to diversify direct customer offerings and advertising solutions
Fox Corporation announced that it has entered into a definitive purchase agreement Tubi, a leader in the rapidly growing category of free ad-supported streams, for a net deposit of approximately $ 440 million / GBP 366,106,400.00 upon completion. The Tubi acquisition underscores Fox's long-term strategic initiatives to expand and improve Fox's digital reach and engagement directly with consumers.
Tubi offers Fox an expanded consumer offering with a substantial, younger and directly connected user base that spends over 160 million hours a month viewing content on the service.
Tubi, currently available on more than 25 digital platforms in the United States, offers over 20,000 titles and 56,000 hours of film and episodic television programming from over 250 content partners, including many of the major studios. The combination of Tubi's reach, the resonance of its content and the quality of its technology platform has doubled the usage and monetization of the service in the past 12 months.
Tubi will also seamlessly integrate and deepen the functions of the network in key areas such as digital advertising, direct-to-consumer interfaces and personalization technology. Similarly, Tubi will be able to take full advantage of Fox’s advertising and sales relationships, as well as its impressive national and local advertising platforms, to further drive the service’s growth.
Fox plans to continue operating Tubi as an independent service anchored by its robust consumer offering of licensed entertainment content. Fox will explore ways to expand the Tubi offering, not through original content, but at low cost by leveraging our expertise in national and local news and sports programs.
Lachlan Murdoch, Executive Chairman and Chief Executive Officer of Fox Corporation, commented: “Tubi will instantly expand our audience and capabilities for direct customers and offer our advertising partners more opportunities to reach a large audience. Coupled with the combined performance of Fox's existing networks, Tubi provides an important foundation on which we can drive long-term growth in direct sales. "
Tubi's founder and CEO, Farhad Massoudi, who will continue to lead Tubi, added: “Fox Corporation's relationships with advertisers and distributors, combined with the company's dominance of news and sports programs, will help Tubi continue to grow and to differentiate in the highlands. Growth of ad-financed streaming marketplace. I'm proud of what the team here at Tubi has already achieved, and we couldn't be more excited to join such a fast-paced, entrepreneurial company. We look forward to working with Fox to strengthen Tubi's leadership in the market and give Fox new skills. "
Fox will primarily finance the Tubi acquisition with the net proceeds from the sale of its stake in Roku Inc.. In this way, Fox maintains its balance sheet capacity by essentially exchanging a passively held minority stake for full ownership and control of a leadership position in the market for free ad-financed streaming.
Regarding the sale of Fox's stake in Roku, Murdoch added: “We were an early investor in Roku and continue to admire the ongoing performance of Anthony Wood and his team. We are pleased to expand our partnership with them due to the acquisition of Tubi. "
The Tubi transaction, which is subject to regulatory approvals and compliance or waiver of customary closing conditions, is expected to close before June 30, 2020.
Everyone & Companies acts as financial advisor to Fox, and Jenner & block and Kirkland & Ellis LLP act as Fox's legal advisers on the transaction. Qatalyst partner acts as the sole financial advisor to Tubi and Fenwick & west LLP acts as a legal advisor.