Fox Corp. will acquire streaming pioneer Roku in a $22 billion cash-and-stock deal, combining Fox's news and sports content with Roku's platform of over 100 million global households. The transaction values Roku at $160 per share. The deal, which requires shareholder and regulatory approval, is expected to close in the first half of 2027 and will make the combined entity the third-largest player in U.S. television viewing.
Fox-Roku acquisition deal
- ▪Fox Corp. has agreed to buy streaming pioneer Roku in a cash-and-stock deal valued at approximately $22 billion, including debt
- ▪The combined Fox-Roku company will become the third-largest player in U.S. television by share of viewing
Roku founding by Anthony Wood
- ▪Roku founder Anthony Wood was motivated to create the technology to record his favorite show, “Star Trek.”
- ▪Roku was founded by Anthony Wood, who serves as the company's chairman and CEO
- ▪Roku was spun off by Netflix and released its first set-top box in 2008
Strategic rationale for merger
- ▪The acquisition will give Fox access to more than 100 million global households, the Roku channel, and its first-party data
- ▪The merger combines Fox's live news and sports content with Roku's streaming platform, giving Fox more exposure to advertising and subscriptions
Transaction financial terms
- ▪The transaction values each Roku share at $160
- ▪Upon closing, Fox shareholders will own approximately 73% of the combined company, with Roku shareholders owning about 27%
- ▪Fox will pay $96 in cash and 0.9693 shares of its Class A common stock for each Roku share
Post-merger leadership structure
- ▪Roku CEO Anthony Wood will join the Fox board of directors and have an ongoing role at the company after the transaction closes
Regulatory approval requirements
- ▪The deal requires approval from both Fox and Roku shareholders as well as regulatory approval
- ▪The acquisition is expected to close in the first half of 2027
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