Begbies Traynor Group advises FastStream Interactive Limited (“FSI”) on MBO of ROXi

Begbies Traynor Group has advised the management of ROXi, the interactive music video streaming service, on a management buy-out enabling the newly formed company FastStream Interactive Limited (“FSI”) to launch its Interactive TV Channels in the US.

FSI has acquired the business and technology of ROXi, in partnership with a syndicate of investors that includes major US TV broadcasters Sinclair Broadcast Group and Gray Television.

The newly formed company has also sealed distribution deals with major US TV broadcasters to bring ROXi and other new innovative Interactive TV Channels to US Broadcast TV across the US.

ROXi will be America’s first Interactive TV Music Channel, available free on NEXTGEN TV, allowing TV viewers across America frictionless access to all the music they love, whenever they want, for free, on their TV without the need for an app - and with no registration or subscription required.

The Begbies Traynor Group team was led by Partner Asher Miller and Deals Advisory Partner Felix Connolly with support from and Senior Associates Ben Haines and Olivia Cleary. Rockefeller Capital Management and Keystone Law also advised on the deal.

Rob Lewis, CEO of FastStream Interactive, said: 

“The new technology, FastStream, will revolutionise Broadcast TV. For the first time in history, consumers tuning into a normal TV channel will find they automatically start at the beginning of the program, and that they are able to skip, pause or search, even though they are watching normal Broadcast TV.”

FastStream Interactive Limited has the support of more than 100 major investors including multiple US broadcasters and prestigious names in music and corporate finance, who see the technology as an opportunity to enhance the Broadcast TV experience across the US.

Shareholders include US broadcasters Sinclair Broadcast Group and Gray TV, U2 bassist Adam Clayton, Terra Firma Founder Guy Hands, British billionaire businessman Jim Mellon, and Global Lead of TMT at Rothschilds Warner Mandell.

Asher Miller, Partner at Begbies Traynor Group, said:

“We are delighted to have supported the delivery of this highly complex transaction which has involved an international M&A process and the navigation of complicated stakeholder dynamics. We thank all the stakeholders involved for their support in reaching a successful outcome which provides a platform for FSI to disrupt the US and UK TV markets. We look forward to seeing the revolutionary impact of FSI on the NEXTGEN TV industry over the coming years.”

Felix Connolly, Deals Advisory Partner at BTG Advisory, said:

“The successful acquisition of ROXi’s technology platform by FSI will ensure this revolutionary technology can be enjoyed by millions of TV viewers across the globe.

“To complete this transaction, we over-came a significant number of transaction complexities. We negotiated with secured creditors to help get the deal off the ground, navigated complex valuation modelling and worked closely with new investors, incumbent creditors and other stakeholders to support FSI with the delivery of this transaction. The result is a watershed moment for this technology, but also how TV across the US is watched.”

Skip Flenniken, VP & GM Technology Business Development at Sinclair Broadcast Group said: 

“FastStream Interactive will enable Sinclair to bring a range of cutting edge fully interactive TV channels to broadcast TV across the US on NEXTGEN TV. Viewers will be able to search and skip through content like they are scrolling through TikTok.”

Robert Folliard, CVP of Government Relations & Distribution at Gray Television, said:

“Working together with FastStream Interactive, Gray will be introducing fully interactive TV channels to viewers. We see this as a compelling new chapter for TV entertainment.”