Did Fox Make a Mistake Buying Tubi?
Fox (NASDAQ: FOXA) bought Tubi, a leading ad-supported streaming service, in March 2020 for $440 million. With growing competition for media content, Tubi was struggling to maintain a content library big and broad enough to engage existing viewers and drive new sign-ups. Fox, with its existing media assets, had an opportunity to expand the platform with its own content.
But in order to make the acquisition, it had to sell its 5% stake in Roku (NASDAQ: ROKU), 6 million shares. At the time, the sale was estimated to generate approximately $350 million to go toward the Tubi acquisition. Today, however, those 6 million Roku shares would be worth more than $2.5 billion, as The Streamable points out.
Image source: Tubi.
Source Fool.com
