Fox Is Acquiring More Firepower in the Streaming Wars
Fox (NASDAQ: FOXA) doesn't have much of a footprint in streaming video, unlike fellow media companies. After selling its stake in Hulu to Disney (NYSE: DIS) last year -- along with most of its cable networks, film studios, and other assets -- Fox's presence in streaming video is just its TV Everywhere apps and a Fox News streaming service called Fox Nation.
It's now bolstering its presence in streaming with the acquisition of Tubi, an ad-supported streaming service featuring old films and TV series. Fox will pay $440 million for the company, and it's notably funding the acquisition with the sale of its stake in Roku (NASDAQ: ROKU), which it acquired pre-IPO. The company unloaded its Roku shares earlier this week, and likely raised about $350 million before taxes and fees.
The divestiture in Roku and the Tubi acquisition ought to put Fox in a stronger position going forward as more consumers shift their TV time to streaming.
Source Fool.com
