Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Viewership Milestone. The company announced that more than four million viewers tuned in to its broadcast and streaming platforms for its live coverage of the President’s State of the Union address on February 24. Notably, the Newsmax channel garnered 2.8 million total viewers, with an additional 1.3 million streaming the coverage on Newsmax2. The strong viewership marked a major ratings and digital engagement milestone, reflecting the network’s growing reach across traditional and digital platforms.
Ratings Leadership. The network’s total audience exceeded the combined viewership of Fox Business, CNBC, and NewsNation by 23%. Throughout the evening, the Newsmax team provided continuous updates on Newsmax.com and engaged more than 23 million social media followers. Additionally, a wide range of lawmakers, administration officials, and political commentators joined the network on both broadcast and streaming coverage.
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Key Points: – Roku will acquire Frndly TV for $185 million in cash, aiming to expand its affordable live and on-demand TV offerings. – Frndly TV offers 50+ family-friendly channels and unlimited DVR for $6.99/month, appealing to cost-conscious consumers. – The acquisition supports Roku’s platform revenue strategy while preserving Frndly TV’s availability across all major devices.
Roku (NASDAQ: ROKU) has announced a definitive agreement to acquire Frndly TV, a low-cost subscription streaming service offering live and on-demand television content. The $185 million all-cash deal is expected to close in the second quarter of 2025 and marks Roku’s latest effort to expand its content offerings and drive subscription revenue through its growing streaming platform.
Founded in 2019 and based in Denver, Colorado, Frndly TV has built a loyal subscriber base by offering more than 50 family-friendly channels—including A&E, Hallmark Channel, Lifetime, and The History Channel—for just $6.99 per month. The service also includes thousands of hours of on-demand content and unlimited cloud-based DVR functionality, appealing to value-conscious viewers seeking alternatives to more expensive cable or streaming bundles.
Roku, already the No. 1 TV streaming platform in the U.S. by hours streamed, sees the acquisition as a natural extension of its efforts to grow platform revenue and bolster its direct-to-consumer subscription business. In a competitive streaming landscape dominated by major players like Netflix, Disney+, and Amazon Prime Video, Roku’s focus on aggregation, accessibility, and affordability gives it a unique position to appeal to mainstream households and budget-conscious consumers.
“Frndly TV has carved out an impressive niche by delivering high-quality, feel-good programming at a very competitive price,” said Roku CEO Anthony Wood. “This acquisition enhances our ability to serve the growing segment of viewers seeking live TV without the high cost of traditional cable. It’s a move that supports both our customer-first philosophy and our monetization goals.”
The deal structure includes a $75 million performance-based holdback, contingent on Frndly TV achieving certain subscription and revenue milestones over the next two years. Frndly TV’s leadership team, including co-founder and CEO Andy Karofsky, will remain with the company post-acquisition to maintain continuity and support its growth within the Roku ecosystem.
Importantly, Frndly TV will continue to operate as a multi-platform service. It will remain available on Amazon Fire TV, Apple TV, Android and Google TV, Samsung and Vizio smart TVs, as well as on mobile apps and the web—ensuring that existing subscribers can continue accessing their content without disruption.
For Roku, the acquisition aligns with its broader strategy to offer comprehensive content at competitive price points while continuing to invest in its proprietary advertising and subscription infrastructure. The company has made it clear that adding subscription value—especially live TV and family-friendly entertainment—is a core component of its growth model moving forward.
This move also puts Roku in a stronger position to compete in the live TV space, where rivals like YouTube TV and Hulu + Live TV offer broader packages at significantly higher price points. By acquiring Frndly TV, Roku gains a differentiated product that serves an underserved market segment.
With stable subscriber growth, brand trust, and a growing library of original and licensed content, Roku’s purchase of Frndly TV is poised to pay long-term dividends, particularly as consumers continue to shift from traditional cable to more flexible and affordable streaming solutions.
Key Points: – Disney to control 70% of combined streaming entity worth over $6 billion – Merger creates 6.2 million subscriber base across North America – Deal settles antitrust litigation and reshapes sports streaming landscape
The streaming TV landscape shifted dramatically today as Disney announced plans to merge its Hulu + Live TV business with sports-focused FuboTV, creating a powerhouse that will reshape how millions of Americans consume live content. The deal, which gives Disney a 70% controlling stake in the combined entity, marks 2025’s first major media consolidation.
The merger creates one of the largest digital pay-TV providers in North America, with over 6.2 million subscribers and projected revenue exceeding $6 billion. Under the agreement, the combined business will operate under the Fubo publicly traded company name, with current Fubo shareholders retaining 30% ownership.
David Gandler, Fubo’s co-founder and CEO, who will lead the new entity, emphasized the strategic benefits of increased scale. The merger provides Fubo with immediate access to $220 million in cash, plus an additional $145 million in committed financing available in January 2026, strengthening its position for future growth and investment.
The deal notably resolves Fubo’s ongoing antitrust litigation with Disney, Fox, and Warner Bros. Discovery regarding the Venu Sports platform. This settlement removes a significant obstacle to the planned sports streaming service and positions the combined company to offer more flexible content packages to consumers.
The merger addresses several key challenges in the streaming landscape. For Fubo, which has struggled with high content costs and subscriber churn, the partnership provides crucial financial stability and enhanced content access, including ESPN+ through new distribution agreements. For Disney, the deal strengthens its position in the increasingly competitive streaming market while expanding its reach in sports content delivery.
Looking ahead, the combined company plans to maintain distinct service offerings. Hulu + Live TV will continue its focus on entertainment-based cable replacement, while Fubo will expand its sports and news offerings. Gandler highlighted the potential for creating “skinnier” bundles tailored to specific consumer preferences, addressing a long-standing market demand for more flexible viewing options.
The market has responded positively to the announcement, with Fubo’s shares surging nearly 250% following the news. The combination is expected to achieve immediate positive cash flow, addressing previous profitability concerns in the streaming sector.
This strategic merger represents a significant evolution in the streaming industry’s maturation, potentially setting the stage for further consolidation as providers seek scale and profitability in an increasingly competitive market. The deal’s success could provide a blueprint for future media partnerships aimed at balancing content costs, subscriber growth, and sustainable business models.
