The $440 million acquisition represents the media conglomerate's first major move in the streaming market. Fox will inherit 25 million Tubi users and a veritable catalog of content, including movies and shows from over 250 content partners including Warner Brothers, Paramount, Lionsgate and NBCUniversal.
"Tubi will immediately expand our direct-to-consumer audience and capabilities and will provide our advertising partners with more opportunities to reach audiences at scale," Fox CEO Lachlan Murdoch said in a press release. "Importantly, coupled with the combined power of FOX's existing networks, Tubi provides a substantial base from which we will drive long-term growth in the direct-to-consumer arena."
Fox plans to host its own content on the platform, although original programming does not form part of its short-term plans. Fox will use the acquisition to compete with other free ad-supported streaming services like Pluto TV, Comcast's Xumu, and Sony-owned Crackle.
Fox sold its 5 percent stake in Roku to help fund the acquisition, according to Variety. Under the terms of the deal, Tubi will remain an independent service, so it won't come under the Fox name, but Fox will offer a large number of its older TV shows and movies for free to Tubi subscribers.