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Fox Corp. has agreed to buy Roku for $160 per share, using a mix of cash and Fox Class A common stock. This values Roku at about $22 billion.
The deal combines Fox's sports, news, and entertainment content, including its free streaming service Tubi, with Roku's TV platform, The Roku Channel, and its data systems. Roku now reaches over 100 million streaming households worldwide.
Together, the new company will be the third-largest US TV provider by viewing share, reaching audiences through broadcast, cable, local, and streaming platforms.
Fox will buy all Roku shares at $160 each, using both cash and Fox Class A common stock. Fox plans to keep its strong financial rating and continue share buybacks and dividends during the acquisition.
Roku's board approved the deal after a review, saying it gives shareholders a strong premium and a chance to benefit from the new company's growth.
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The new company will work across all major viewing platforms. Fox said the deal brings together live sports and news with the ongoing growth of streaming.
Fox said it will keep Roku open to partners and continue to distribute Its content widely across the new network.
Lachlan K. Murdoch, Fox's executive chair and CEO, said this deal is the company's next move after focusing on live news and sports in 2019 and buying Tubi in 2020: 'Roku pioneered streaming TV and scaled it into a leading CTV platform. Together, we intend to lead its next chapter.'
The new platform will bring together Fox's live content and Roku's advertising technology, along with its direct connections to viewers. Both companies said this scale will help viewers, partners, and advertisers across all major channels.
Roku founder, chairman, and CEO Anthony Wood said the board believes the deal gives shareholders a strong premium and a chance to benefit from the new company's future growth.
The deal still needs standard regulatory approval.
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