Fox Corporation has entered an agreement to acquire streaming leader Roku through a cash-and-stock arrangement valued at around $22 billion, including debt. This acquisition will provide Fox with access to over 100 million global households, along with the Roku channel and its valuable first-party data.
Fox already manages extensive sports, news, and entertainment networks, as well as Tubi, acquired in 2020. Roku was initially spun off by Netflix, having released its first set-top box in 2008. Anthony Wood, Roku’s founder, initially served at Netflix in the early 2000s during its transition from DVD rentals to streaming.
Despite his Netflix beginnings, Wood pursued the creation of Roku, motivated by his desire to record and play his preferred show, “Star Trek.” As part of the acquisition, Roku will maintain its operations as an open, partner-friendly platform. According to statements by Fox and Roku, the combined entity will rank as the third-largest in U.S. television by viewing share.
Fox Corp. CEO Lachlan Murdoch commented on the merger: “Combining Fox’s live news and sports content with a streaming platform such as Roku enhances exposure to advertising and streaming subscriptions.”
Anthony Wood, Roku’s chairman and CEO, expressed that the merger represents an extraordinary chance to accelerate the company’s vision, expand scale, and innovate rapidly for viewers and advertisers. Wood will continue holding a role within Roku and will join Fox’s board of directors post-transaction.
Fox is set to pay $96 in cash, along with 0.9693 shares of its Class A common stock for each outstanding Roku Class A and Class B share. This transaction valuation amounts to $160 per Roku share.
Post-deal closure, existing Fox shareholders are projected to own 73% of the combined company, while Roku shareholders will hold 27%. The deal is anticipated to finalize in the first half of the upcoming year, pending approvals from Fox shareholders, Roku shareholders, and regulatory bodies.
Consequently, Fox shares decreased before the market opened, whereas Roku shares experienced a modest increase.