Roku Gets $60 Million in New Funding to Expand Streaming

Roku Inc., the closely held online video service, said it received $60 million in funding from new investors to expand its Web-based movie and television streaming services.

Hearst Corp. and an unidentified institutional investor joined News Corp. (NWSA), British Sky Broadcasting Group Plc (BSY) and other backers who have previously invested in the company, in the new funding round, Saratoga, California-based Roku said today in a statement.

Roku’s TV set-top boxes download movies and shows to Web-connected television sets from content providers including Time Warner Cable Inc. (TWC), Comcast Corp. (CMCSA) and DirecTV. (DTV) The investment will be used to help Roku work with equipment manufacturers to expand access to its streaming platform, the company said today.

The company in August announced agreements to work with equipment makers including Haier Electronics Group Ltd., Hitachi America and Mitsubishi Electric to create televisions that can access online services like those provided by Netflix Inc. (NFLX) without a set-top box.

Roku has sold more than 5 million of its streaming devices in the U.S., according to the company.

To contact the reporter on this story: Michael White in Los Angeles at mwhite8@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net

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