Fox is making one of the biggest moves in the media business this year. The company announced on Monday, June 15, that it has reached an agreement to acquire Roku in a cash-and-stock transaction valued at approximately $22 billion, including debt, a deal that would bring together one of television’s most recognizable content companies with a platform that helped define the streaming era.
According to The New York Times, the deal gives Fox access to Roku’s massive footprint of more than 100 million households worldwide, along with its advertising technology, viewer data, and the free streaming service The Roku Channel. According to the companies, Roku will continue operating as an open platform for partners and consumers, with no immediate changes expected for users. Once the transaction is completed, the combined company is projected to become one of the largest players in U.S. television based on viewing share.
For Fox, the acquisition significantly expands its reach beyond traditional television. The company already controls major sports, news, and entertainment properties, as well as the free streaming service Tubi, which it acquired in 2020.
The deal also represents a major milestone for Roku founder Anthony Wood, whose company helped usher in the modern streaming revolution. Founded in 2002, Roku gained early momentum through its partnership with Netflix and launched the first Roku Streaming Player in 2008.
Over time, the company evolved from a hardware maker into a dominant smart TV operating system and advertising platform. “The combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers,” Wood said in prepared remarks.
Wood will remain involved with the business and join Fox’s board following the closing of the transaction.
Fox CEO Lachlan Murdoch framed the acquisition as a long-term play for the future of video. “We are confident this is the right transaction, at the right moment, for all the right reasons,” Murdoch said.
During a conference call, he added that the combined company would be better positioned for the next decade of video than either business could be on its own.
Fox will pay $96 in cash plus 0.9693 shares of Fox Class A stock for each Roku share, valuing Roku at $160 per share. After the deal closes, existing Fox shareholders are expected to own roughly 73% of the combined company, while Roku shareholders will own about 27%.
The acquisition is expected to close during the first half of next year, pending shareholder and regulatory approval.
