Fox Acquires Roku in Major Streaming Move
In an effort to tap into the combined power of live TV and digital streaming, Fox Co., Ltd. announced on Monday its plans to acquire Roku, Inc. for $160 per share, valuing the deal at around $22 billion.
This merger aligns with Fox’s portfolio, which includes Tubi, NFL, MLB, and FOX News Media. It also positions the company as the top TV streaming platform in the U.S. regarding hours watched, pushing forward its growth in connected TV advertising.
Lachlan Murdoch, Fox Corporation’s Executive Chairman and CEO, described this acquisition as a pivotal moment for the company. “It’s a natural extension of the focused strategy we have executed for nearly a decade,” he stated. “We’re combining the most valuable live content portfolio with America’s premier streaming platform.”
Murdoch further emphasized the strong financial standing of the company in this acquisition, mentioning its investment-grade balance sheet and ongoing capital return program through share repurchases and dividends. “Roku has led the streaming TV revolution, and we are eager to guide its next chapter together,” he added.
The merger is set to place the newly formed company as the third-largest player in U.S. television by viewership. Roku currently has over 100 million users globally, including a significant portion of broadband households in the U.S.
Both companies’ boards have unanimously approved the deal, with Fox obtaining the company through a mix of cash and stock. Share ownership will be allocated 73% to current Fox shareholders and 27% to Roku shareholders, based on pre-acquisition holdings.
Anthony Wood, Roku’s founder and CEO, will retain a role in the combined entity and will join Fox’s board after the deal finalizes in the first half of 2027. “In 20 years, we’ve established Roku as a leader in TV streaming, transforming how people find and enjoy entertainment. Teaming up with Fox presents fantastic opportunities for our viewers, partners, and advertisers,” Wood commented.
He also mentioned that after a strategic review, the board found this transaction beneficial for Roku stockholders, offering a promising future for the merged entity. “I couldn’t be more enthusiastic about our future together,” he added.
The completion of this transaction is dependent on standard closing conditions, which include the approval of shareholders from both companies and the necessary regulatory clearances. It is anticipated to close in the first half of 2027.
