Fox CEO: Tubi Value Not Reflected in Stock Price, Suggesting Possible Future Spin-Off
Erik Gruenwedel
May 12, 2025
With Fox Corp.’s ad-supported streaming service Tubi generating record revenue, viewership and viewing time, CEO Lachlan Murdoch says the platform, which was the first AVOD to live-stream the Super Bowl, is undervalued by Wall Street.
Speaking on the Feb. 12 fiscal call, Murdock again heralded Tubi’s 35% increase in quarterly revenue, which exceeded the previous quarter’s record 31% revenue increase, driven by the political elections. He said the platform is generating $1 billion in revenue over the trailing 12 months. About 24 million average viewers streamed the Super Bowl on Tubi, which included 16 million unique viewers, of which 50% were female.
With Fox announcing the name — Fox One — of its pending direct-to-consumer streaming platform, Murdoch reiterated that Tubi is “a very good business” attracting 65% of the internet-only consumers. At the same time, the executive lamented the platform’s lack of recognition from investors.
“The only frustrating part about the business is that we don’t get appropriate valuation within our stock,” Murdoch said. “We think it’s a tremendously valuable business, and we’re looking forward to outperforming with Tubi for years to come.”
The rhetoric is similar to why Lionsgate recently spun-off its Starz multilevel distribution platform. The company felt the brand, which it acquired in 2016 for $4.4 billion, was undervalued by Wall Street.
Starz is now trading at $12.19 per share, which is almost 69% higher than Lionsgate Studios at $7.22 per share.
Fox acquired San Francisco-based Tubi in 2020 for $440 million.
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