Tubi Acquisition: Key Details, Impact, and What Comes Next

Fox Corporation's acquisition of Tubi for $440 million in 2020 marked a significant move in the streaming industry. This strategic purchase aimed to diversify Fox's direct-to-consumer offerings and expand its digital reach. By integrating Tubi, Fox positioned itself to leverage the growing demand for ad-supported video-on-demand services, enhancing its capabilities in digital advertising and consumer engagement.

What Is Tubi?

Tubi, founded in 2025, is a streaming service that offers free access to a wide range of movies and TV shows online. Its core services include categories such as Movies, TV Shows, Live TV, and specialized content for kids and Spanish-speaking audiences. Tubi's unique selling points include its diverse selection of genres, including Classics, Westerns, Mystery, Romance, and Horror, and its accessibility on multiple devices like iOS, Android, Roku, and Amazon Fire.

Who Acquired Tubi?

Fox Corporation is a major player in the media and entertainment industry, producing and distributing content through leading brands such as FOX News Media, FOX Sports, FOX Entertainment, FOX Television Stations, and Tubi Media Group. Its key services include news broadcasting, sports coverage, entertainment content, and local television broadcasting. Fox holds a significant market position, influencing public opinion and providing entertainment to a global audience through its widely recognized and trusted brands.

When Was Tubi Acquired?

Fox Corporation acquired Tubi on March 17, 2020, for $440 million. This acquisition occurred during a period of significant growth in the ad-supported video-on-demand (AVOD) market. The timing was strategic, as Fox aimed to diversify its digital reach and capitalize on the increasing consumer demand for free streaming services. This move also followed the sale of Fox's stake in Roku, Inc., providing the financial means to fund the acquisition and enhance Fox's direct-to-consumer offerings.

Why Was Tubi Acquired?

• Market Expansion: The acquisition of Tubi has significantly broadened Fox's direct-to-consumer digital reach. Tubi's user base has grown from 33 million monthly users in 2021 to 51 million in 2022, with a forecast of 55 million US viewers in 2023. This growth is largely driven by the increasing demand for ad-supported video-on-demand (AVOD) services, which are expected to reach over half the US population by 2026.
• Technology Integration: Tubi's integration with Fox enhances the latter's capabilities in digital advertising, direct-to-consumer interfaces, and personalization technology. This strategic move leverages Tubi's technology platform to improve user engagement and monetization, while also incorporating advanced technologies like Blockchain Creative Labs and 4K streaming capabilities.
• Competitive Advantage: The acquisition strengthens Fox's position in the competitive streaming market by providing a substantial base for long-term growth. Tubi's appeal to diverse audiences, including significant viewership from Black households, and its leadership in the AVOD market, give Fox a competitive edge. Additionally, Fox's focus on sports and news content differentiates Tubi from other streaming services that emphasize original programming.

Acquisition Terms

• Acquisition Price: $440 million
• Payment Method: The acquisition was financed primarily with the net proceeds from the sale of Fox's stake in Roku, Inc.
• Key Conditions or Agreements:
  • The transaction was subject to regulatory approvals and the satisfaction or waiver of customary closing conditions.
  • Tubi continues to operate as an independent service.
  • Fox leverages its expertise in national and local news and sports programming to expand Tubi's offerings.
  • Fox uses its advertising and distribution relationships to augment Tubi's growth.

Impact on Tubi

The acquisition of Tubi by Fox Corporation has led to notable changes in its operations and management. Tubi continues to operate independently, but with enhanced integration into Fox's digital advertising and personalization technologies. Farhad Massoudi, the founder and CEO of Tubi, initially remained at the helm but later stepped down, with Paul Cheesbrough appointed as the CEO of the newly formed Tubi Media Group. This restructuring aims to leverage Fox's broader digital business capabilities, including news, sports, and entertainment, to drive Tubi's growth and market presence.

In terms of product offerings, Tubi has expanded its content to include national and local news and sports programming, leveraging Fox's extensive media assets. This strategic shift aims to differentiate Tubi from other streaming services that focus on original content. Customer reactions have been mixed; while some appreciate the expanded content, others express concerns about potential biases in programming. Employee reactions have generally been positive, with leadership expressing excitement about the growth opportunities under Fox's ownership. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.