Roku, Inc. (NASDAQ: ROKU) has entered into a definitive agreement to acquire Frndly TV, a leading low-cost live TV streaming service, in a transaction valued at up to $185 million in cash. The Roku $185M Frndly TV Acquisition is expected to strengthen Roku’s subscription business and expand its live TV content offerings.

Debevoise & Plimpton LLP served as legal counsel to Roku, while Fenwick & West LLP advised Frndly TV on the transaction. Under the terms of the agreement, Roku will pay $110 million upfront, with an additional $75 million tied to performance-based earnouts over the next two years. The deal is anticipated to close in the second quarter of 2025, subject to customary closing conditions.

“Frndly TV's impressive growth and expertise in direct-to-consumer subscription services make it a compelling addition to Roku,” said Anthony Wood, Founder and CEO of Roku. “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.”

Founded in 2019 and headquartered in Denver, Frndly TV offers more than 50 popular channels, including Hallmark Channel, A&E, The History Channel, and Lifetime. Known for its affordable pricing and user-friendly features like streaming and DVR, the service will continue operating across all existing platforms—including Roku, Amazon Fire TV, Apple TV, and mobile devices.

Frndly TV's team, including co-founder and CEO Andy Karofsky, will remain in place following the acquisition.

“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,” said Karofsky. “Roku's pioneering role in streaming and its customer-first approach align perfectly with our vision.”

This acquisition marks another milestone in Roku’s strategic expansion through M&A. Notable past transactions include the acquisition of dataxu (2019), Quibi’s content library (2021), and This Old House Ventures (2021).

Roku continues to lead as the No. 1 TV streaming platform in the U.S. by hours streamed. In addition to The Roku Channel, the company licenses its proprietary operating system to TV manufacturers and offers a suite of streaming devices and smart home products.

Legal Advisors:

• Debevoise & Plimpton LLP: M&A Partner Aly Love, Tax Partner Michael Bolotin, Antitrust Partner Tim Cornell

• Fenwick & West LLP: Counsel Jeremy Delman, Partner Kris Withrow