Fox Buys Red Seat Ventures // Strong M&A Signal for Creator x Podcasting

February 14, 2025 by Chris Erwin

RockWater Roundup

M&A analysis of the creator economy to make you a better operator and investor.

Today we discuss Fox’s acquisition of Red Seat Ventures, including the deal details, strategic rationale, and why the deal signals strong M&A momentum for creators x podcasting in 2025.

Let’s break it down…

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NOTE: We know the RSV founding team well, and have worked with them. Therefore, we can’t go into details about estimating financials and deal details, and will focus our analysis on public domain info.

–TARGET: Red Seat Ventures–

Overview

Provides production, distribution, branding, sales, and back office services for creators
Focus on right-leaning political / news, opinion, entertainment, true crime, sports content
Focus in audio and video podcasts, streaming shows, and other programming
Helps creators build and grow D2C media businesses and personal brands
Founded 2015 by brothers Chris Balfe, Kevin Balfe
36 associated members on LinkedIn
Based in NYC

Company Highlights

17 creator-led shows
200M monthly views in Nov ’24
Top 10 podcast network in US in audience reach
Clients include Megyn Kelly, Tucker Carlson, Piers Morgan, Dr. Phil

Business Lines

As sales, growth marketing, and consulting services
Digital media production and distribution
Live events

O&O Live Events Brand: CrimeCon

Hosts large-scale conventions around the world for true-crime fans
Operates crimeHQ, an online true-crime community, $7/mo subscription model
Operates CrimeCamp, a forensic investigation experience, $2.2k ticket

Capital Markets History

Raised $1.1M seed round in 2018 (Pitchbook)

–BUYER: Fox Corp–

Overview

Traditional media company
Operates cable, television, and digital media networks

Company Highlights

Operates 6 top-150 US TV broadcast / cable channels

Channel Name	U.S. Rank	Nielsen Audience
Fox News Channel	2	3.8M
FOX	4	2.2M
Fox Sports 1	35	242K
Fox Business Network	53	132K
Fox Deportes	112	15K
Fox Sports 2	116	10K

Business Lines

News & Information Channels
- Fox News Channel
- Fox Business Network
Sports Channels
- Fox Sports (FS1 and FS2)
- Big Ten Network (BTN)
Digital & Streaming
- Tubi – FAST platform + Credible, Blockchain Creative Labs, entire Fox Technology org
- Fox Nation – Subscription based service offering political content, documentaries, and opinion shows

Stock Price

$51.17 as of 2.12.25
Up 11.6% MoM
Up 86% YoY

Financials

(via public filings and stockanalysis.com)

2024 FY Revenue of $15.2B
2024 Rev growth 4%
2024 EBITDA of $3.5B

Valuation

Mkt Cap: $23.54B
C&CE: $3.3B
Total Debt: $8.1B
Enterprise Value: $28.66B
8.3x 2024 est. EV/EBITDA

Capital Markets History

Raised $1.25B debt financing in Oct ‘23
IPO’d in 2019, relisted when separated from 21st Century Fox

Recent Media M&A History

2019: Sold 21st Century Fox assets to Disney:
- Stake in Hulu
- FX Networks & National Geographic
- 20th Century Fox Film and Television Studios
2020: Acquired Tubi for $490M, a large FAST platform
2021: Acquired Outkick, right-leaning sports and political commentary website

–DEAL DETAILS–

Overview

No deal details disclosed

Post Deal Ops

Tubi CEO Paul Cheesbrough to become RSV’s chairman
Balfe bros will operate RSV independently within Fox’s Tubi Media Group
Former Fox talent will not be employed by Fox

Strategic Rationale

Helps Fox reach new fans as linear viewership declines
Helps Fox activate broadcast talent and linear IP in digital media channels
Adds pipeline of talent and audio / video portfolio into Fox streaming services like Tubi, Fox Nation, and new planned sports and news-oriented service in 2025
Expand RSV service offerings for creators while maintaining independence of their individual brands
Expand RSV into other genres including sports and entertainment

–WHAT ELSE I FIND INTERESTING–

A bet on the next generation of media consumers. Fox seeks to attract younger audiences like Gen Z and millennials, whose media consumption is digital and creator-led. Further, older audiences like Gen X and Baby Boomers are increasing their digital and creator watch-time.
Podcasting M&A is seeing new momentum. The Fox / RSV deal follows 2024’s landmark acquisition of Veritone ONE and Oxford Road by Insignia Capital (our deal analysis). Like creator economy, podcasting is heating up after a down period in dealmaking between summer 2022 through Q3 2024.
Expect more traditional news M&A. Most traditional news media brands are talking to podcasters and digital creators for either buyout or licensing deals.
Venu shut-down a catalyst for More Fox digital M&A. With Venu, the 3-way JV sports streamer between Fox / Disney / WBD, now being shut down due to Disney buying a majority stake in Fubo, we expect Fox to find new ways to be aggressive in growing its digital audiences. The RSV acquisition is a strong move here. Further, while RSV focuses on political / news content, it will also be a vehicle to expand sports and sports-adjacent content for Fox, a key focus area for the parent co.
Fox is smart to let RSV remain independent. RSV will operate independently within Tubi, and removed from Fox News channel. This gives RSV talent the independence they want, but also opens up new ways to collaborate with Fox. A smart way to structure the deal, get it over the goal line, and ensure strong goodwill between RSV and its talent clients post acquisition.
New model for media ownership. Fox is adapting to the new media landscape, where creators want ownership and independence, but need support to scale. In this deal Fox backs creators that drive value back to the company. It also signals how Fox will support the next generation of talent going forward, which will Fox help recruit a broader talent network for continued growth as it aligns with new industry norms. Again, a smart move.
Origin story highlights an important career throughline in RSV founders. RSV CEO Chris Balfe has been a media disruptor for media personalities for a long time, dating back to 2003. From Variety, “Chris Balfe worked for years with another Fox News exile, Glenn Beck, helping him with his production company, Mercury Radio Arts, as well as his media outlet, TheBlaze.” Very early in the media disruption lifecycle, the Balfes saw the talent-led opportunity in D2C and digital. They learned and buit the playbook with a prominent talent in the early 2000s, and built an incredible business applying it to the next generation of talent.
Content-related liability. In 2024 Fox paid a $787M settlement to Domion Voting Systems related to DVS’s defamation lawsuit against Fox. With RSV’s talent-led media brands remaining independent and outside the control of Fox, but RSV being owned by Fox and RSV talent contributing content to Fox’s O&O media network, the deal raises questions about what new and different content-related liability concerns could arise. It’s a new model, and I’m not an expect here, but its worth tracking since we expect to see more similar M&A. This dynamic will be something creator x media execs and dealmakers will have to sort through, and create new operating / governance / contractual systems for as the media landscape evolves.
Fox’s outperformance via focus. From Variety, “Though smaller than contemporaries such as Disney or NBCUniversal, Fox has thrived in recent years by casting off assets devoted to traditional scripted entertainment programming and focusing more intently on content meant to be watched live, particularly sports, game shows and news programming.”
A quote from my analysis of the Soros / Hot Ones acquisition is relevant here.
From that blog post…“This is part of a growing theme of politically-oriented buyers and investors increasingly leaning into digital media, and specifically the creator economy. Semafor recently reported that Fox is talking to political media acquisition targets like Red Seat Ventures and The Daily Wire, which are digital-native and lean conservative. Fox might also be looking at audio networks like Audioboom and iHeart. This also makes me think of Highmount’s $100M investment into Dude Perfect (our deal analysis). Makes sense.If you want to influence the masses, you need to go where modern audiences are. And modern media channels, particularly social media, podcasts, and influencers x creators, have an outsized impact on reaching consumers and influencing them. From their purchase decisions, to their voting behavior.Brands and marketers have made the move. Newco launchers have made the move.
And now politically-affiliated parties and investors are starting to pay a lot more attention and put their dollars to work in the creator economy as well. Particularly after the learnings from Trump’s presidential bid win, which is being described as the “first podcast election”.

I’m the founder of RockWater Industries. We do M&A and strategy advisory for creator economy and digital agencies. From buy / sell-side M&A and fundraising, to consumer research and go-to-market planning.

DM me on LinkedIn or email me chris @ wearerockwater dot com