FOX Corp. bolsters direct-to-consumer capabilities with Tubi deal

FOX Corp. agreed on Tuesday to acquire streaming service Tubi in a deal worth as much as $490 million.

The acquisition of Tubi underscores the company’s “long-term strategic initiatives to broaden and enhance FOX’s direct-to-consumer digital reach and engagement,” the company said.

“Tubi will immediately expand our direct-to-consumer audience and capabilities and will provide our advertising partners with more opportunities to reach audiences at scale. Importantly, coupled with the combined power of FOX’s existing networks, Tubi provides a substantial base from which we will drive long-term growth in the direct-to-consumer arena,” Executive Chairman and CEO of FOX Corporation Lachlan Murdoch said.

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FOX Corp. and FOX News share common ownership.

Tubi is a streaming service currently available on more than 25 digital platforms in the United States that offers over 20,000 titles and 56,000 hours of film and TV content.

Tubi founder and CEO Farhad Massoudi will continue at the helm of the company, which will continue to run as an independent service.

Executive Chairman and CEO of FOX Corporation Lachlan Murdoch said Tubi would expand the company’s direct-to-consumer audience and capabilities.

Executive Chairman and CEO of FOX Corporation Lachlan Murdoch said Tubi would expand the company’s direct-to-consumer audience and capabilities.

“FOX Corporation’s relationships with advertisers and distribution partners, combined with the company’s dominance in news and sports programming, will help Tubi continue to grow and differentiate itself in the high-growth ad-supported streaming marketplace. I am proud of what the team has already accomplished here at Tubi and we couldn’t be more excited about joining such a fast-moving, entrepreneurial company. We look forward to working together with FOX to accelerate Tubi’s leadership position in the market and bring new competencies to FOX,” Massoudi said.

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FOX will fund the Tubi acquisition largely with the proceeds from its completed sale of its stake in Roku, Inc., the company announced.

“We were an early investor in Roku and continue to admire the ongoing accomplishments of Anthony Wood and his team. We are pleased to expand our partnership with them as a result of the Tubi acquisition,” Murdoch said.