The news: Fox has turned down repeated offers of around $2 billion for its free, ad-supported streaming service Tubi, according to Bloomberg. Fox acquired Tubi for $440 million in 2020.
Why did Fox say no? With offers at nearly four times what Fox paid for Tubi, agreeing to a deal would net a tidy profit for Fox and spare it from having to manage a streaming service. But Fox clearly sees more opportunity in sticking with Tubi.
Can Tubi tough it out? Tubi can weather a difficult period for streaming, but changes loom for the industry. Streaming market saturation and shrinking revenues are signs that major consolidation isn’t too far away.
Our take: Tubi’s rapid growth is promising, but it’s still a challenging time to nurture a “new” streaming brand. Fox’s choice to push Tubi as an independent brand rather than promote it as “the Fox streaming service” is a high-risk, high-reward strategy that could either develop Tubi into a household name or cause it to fade away.
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