FOX Corporation has officially closed its acquisition of Roku. As a result, Roku shares are no longer trading on the Nasdaq.
What We Know: The deal pairs FOX’s live sports, news and local programming with Roku’s platform, which reaches over 100 million households. Under the agreement, Roku stockholders receive $95.30 in cash plus 0.9799 FOX Class A shares per Roku share. Consequently, FOX stockholders now own roughly 74% of the company, while former Roku holders own about 26%. Meanwhile, Roku founder Anthony Wood joins FOX’s board and co-chairs FOX Digital Platforms.
What They Said: Lachlan K. Murdoch, Executive Chair and Chief Executive Officer of Fox Corporation: “The closing of this acquisition advances the long-term strategy of FOX. Beginning today, our top priority for the combined company is to continue to relentlessly serve audiences and partners, while reinforcing the openness and choice that is the essence of the Roku platform. Our shared entrepreneurial passion and clear conviction toward building the future together with our new Roku colleagues gives us great confidence in the opportunities ahead of us.”
Anthony Wood, Roku Founder: “We started Roku more than two decades ago to give people a better way to watch TV, and that mission doesn’t change today. What does change is our reach and resources. FOX has a deep respect for Roku’s culture and wholly shares our commitment to staying open to every content partner. Our teams will keep building and innovating as they always have, now with the support and capabilities of FOX behind us. I’m proud of what Roku’s employees have built, and I’m excited about what comes next.”
What Remains Unclear: However, FOX has not detailed where its projected $400 million in cost synergies will come from. Likewise, the release does not say whether those savings involve staffing changes. Additionally, it’s unclear how Roku will treat FOX content while promising openness to rival partners.
What It Means: Ultimately, FOX now owns a direct pipeline into the living rooms of streaming viewers. For the sports media business, that means FOX controls premium live content and a major distribution gateway. Moreover, the new Digital Platforms unit puts Roku, Tubi and FOX One under one roof. Therefore, rival networks and streamers will watch closely to see whether Roku stays truly open.
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