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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