Roku to acquire Frndly TV for $185 million in cash

SAN JOSE, Calif. - Roku, Inc. (NASDAQ: ROKU), a leader in TV streaming with a market capitalization of $9.91 billion, has announced its plan to acquire the subscription service Frndly TV, which provides live TV, on-demand video, and cloud-based DVR at an affordable price. The deal, expected to be finalized in the second quarter, is valued at $185 million in cash, subject to standard closing conditions and performance milestones. According to InvestingPro data, Roku currently appears slightly undervalued based on its Fair Value analysis.

Frndly TV, established in 2019 and headquartered in Denver, CO, has rapidly grown, offering over 50 live TV channels and thousands of hours of on-demand content starting at $6.99 per month. The service also features an unlimited cloud-based DVR, enabling users to record shows and access content aired in the past 72 hours.

Anthony Wood, the Founder and CEO of Roku, highlighted the acquisition’s alignment with the company’s strategy to increase platform revenue and Roku-billed subscriptions. The company’s strong financial position, with more cash than debt on its balance sheet and a healthy current ratio of 2.62, provides solid backing for this strategic move. Frndly TV’s budget-friendly live content offering is seen as a significant draw for users. InvestingPro subscribers can access 6 additional key ProTips about Roku’s financial health and market position.

Andy Karofsky, CEO and Co-Founder of Frndly TV, expressed enthusiasm for joining Roku. He emphasized that Roku’s streaming leadership and customer commitment resonate with Frndly TV’s mission to deliver affordable, quality entertainment. The acquisition is anticipated to boost subscription growth due to the shared customer demographics between the two companies.

Following the acquisition, Frndly TV will maintain its availability across current platforms, including Amazon Fire TV, Android TV, Google TV, Apple TV, various smart TVs, web browsers, and mobile devices.

This move comes as part of Roku’s broader strategy to expand its content offerings and enhance its platform’s value to users. Roku is well-known for its streaming players, Roku TV models, and The Roku Channel, which ranks as the second most popular app on the platform in the U.S. by streaming hours.

The information regarding this acquisition is based on a press release statement from Roku, Inc.

In other recent news, Roku Inc. reported its quarterly financial results for the period ending March 31, 2025. The financial details, disclosed in a Shareholder Letter, provide a view of Roku’s financial health as of the end of the first quarter. Evercore ISI maintained its In Line rating for Roku and a price target of $105, expressing optimism that the company might exceed revenue and EBITDA expectations for the quarter. The firm highlighted Roku’s history of surpassing its revenue guidance in most recent quarters. JMP Securities upgraded Roku’s stock rating to Market Outperform, with a price target of $95, citing the company’s strong position in the television operating system market and its monetization initiatives.

Additionally, Roku recently launched a new lineup of streaming devices and software updates, which was positively received by the market. The new products include the Roku Streaming Stick and Roku Streaming Stick Plus, alongside updates to the Roku platform, enhancing the streaming experience. Roku also announced plans to expand its smart home product range and its global presence, with new product launches in several international markets. These developments reflect Roku’s continued innovation and strategic growth efforts in the competitive streaming industry.

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