Fox Corp has announced it is acquiring Roku. The deal values Roku at roughly $22 billion.
What We Know: FOX will pay $160 per share in a mix of cash and stock, the companies announced Monday. Specifically, shareholders will receive $96 in cash plus 0.9693 shares of FOX Class A stock for each Roku share. Notably, the deal extends FOX’s reach to Roku’s 100 million-plus global streaming households, including over half of U.S. broadband homes. Once combined, FOX and Roku become the third-largest U.S. TV company by share of viewing.
What They Said: Lachlan K. Murdoch, Executive Chair and Chief Executive Officer of Fox Corporation: “This is a defining moment for FOX, and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade. In 2019, we reoriented the company around live news and sports. In 2020, we acquired Tubi and under our stewardship it has become one of the most successful businesses in streaming.
Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it. This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile. And we are executing this acquisition from a position of financial strength – maintaining our investment grade balance sheet while providing our shareholders with an uninterrupted return of capital program in the form of share buybacks and dividends. Roku pioneered streaming TV and scaled it into a leading CTV platform. Together, we intend to lead its next chapter.”
Anthony Wood, Founder, Chairman and Chief Executive Officer of Roku: “Over the past two decades, we’ve built Roku into the leading TV streaming platform, reaching more than 100 million households globally and reshaping how people discover and enjoy entertainment. I’m incredibly proud of what our team has built, and the combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers. That’s why our Board of Directors unanimously determined after concluding its strategic review process that this transaction offers a significant premium to Roku shareholders while also providing them with the opportunity to participate in the compelling future upside of the combined company. I couldn’t be more excited about what we’ll accomplish together.”
What Remains Unclear: The deal is expected to close in the first half of next year. It still needs approval from Fox and Roku shareholders and also regulatory approval. Meanwhile, Fox hasn’t detailed how Tubi will mesh with The Roku Channel. Additionally, Anthony Wood’s “ongoing role” at the combined company lacks specifics beyond his board seat. Finally, the companies plan to share full financing details in upcoming SEC filings.
What It Means: For FOX, the purchase accelerates its streaming ambitions and adds significant scale in connected TV advertising. For Roku, shareholders gain a premium plus a stake in the combined company’s future. Together, the deal signals continued consolidation across the streaming and CTV advertising markets. Ultimately, advertisers and viewers could see a more unified experience spanning broadcast, cable and streaming.
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John Mamola is Barrett Media’s sports editor and daily sports columnist. He brings over two decades of experience (Chicago, Tampa/St Petersburg) in the broadcast industry with expertise in brand management, sales, promotions, producing, imaging, hosting, talent coaching, talent development, web development, social media strategy and design, video production, creative writing, partnership building, communication/networking with a long track record of growth and success. He is a five-time recognized top 20 program director in a major market via Barrett Medi’s Top 20 series and has been honored internally multiple times as station/brand of the year (Tampa, FL) and employee of the month (Tampa, FL) by iHeartMedia. Connect with John by email at John@BarrettMedia.com.
