Roku Just Bought a Streaming Service

Roku is continuing to enhance the Roku Experience as it strengthens its grip on the streaming world.

The streaming platform announced Thursday that it will acquire Frndly TV, a low-cost subscription streaming service that offers live TV, on-demand video, and cloud-based DVR, in a deal valued at $185 million.

“Frndly TV’s impressive growth and expertise in direct-to-consumer subscription services make it a compelling addition to Roku,” Anthony Wood, Founder and CEO of Roku, Inc, said. “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 deal, which is expected to close during the second quarter, is part of Roku’s “ongoing commitment to enhance the Roku Experience by delivering quality content Roku viewers love at an affordable price.” Founded in 2019, the Denver-based Frndly TV, touted as “the “most affordable live TV streaming service in America,” offers more than 50 top-rated live TV channels, including A+E, Hallmark Channel, The History Channel, MeTV, Lifetime, Hallmark Mystery, Game Show Network, Great American Family, ION, The Weather Channel, and more. Frndly TV also offers thousands of hours of on-demand content, as well as unlimited cloud-based DVR, starting at just $6.99 per month.

“We’re incredibly excited to join Roku and continue our mission to provide customers feel-good, quality entertainment as the most affordable live TV subscription streaming service in America,” Frndly TV CEO and co-founder Andy Karofsky said. “Roku’s pioneering role in streaming and its longstanding commitment to customers aligns perfectly with our strategic vision. 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.”

Currently, Frndly TV is available on platforms including Amazon Fire TV, Android TV, Google TV, Apple TV, Samsung, Vizio, and Roku, across web and on mobile, both Android and iOS. Roku said that it will “continue to be available” on those platforms after the acquisition.

The Wrap reports that Frndly TV’s leadership and team will remain on after the all-cash deal, which includes $75 million in holdbacks tied to meeting performance goals and milestones over the next two years.