Fox Corporation announced it has acquired the AVOD OTT Tubi for USD 490 million. The agreement for the acquisition includes USD 440 million to be paid cash, and the remaining USD 50 million in additional payments in the form of deferred consideration over the next three years. Last January, Tubi had made its official arrival at Mexico through a partnership agreement with TV Azteca.
‘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’, said Lachlan Murdoch, Fox Corp. Executive Chairman and CEO. ‘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’, he added.
With Tubi’s acquisition, Fox Corp. is betting in an OTT that, according to what was reported by Variety, ‘offers over 20 thousand TV shows and movies to watch for free and claims to have a base of 25 million active monthly viewers’.
Regarding the possibility of expanding Tubi’s content offer, Tubi’s Founder and CEO, Farhad Massoudi, explained that ‘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’.