Fox Corp. to Acquire Roku in $22 Billion Cash-and-Stock Deal
Fox Corp. announced a cash-and-stock transaction valued at about $22 billion to purchase streaming platform Roku, creating a combined entity that would rank third among U.S. television viewers.
Fox Corp. agreed on Monday to buy Roku in a cash-and-stock deal valued at roughly $22 billion, including debt. The transaction will be settled with $96 in cash and 0.9693 shares of Fox Class A common stock for each Roku share, valuing Roku at $160 per share. After the merger, Fox shareholders are expected to hold about 73 % of the combined company, with Roku shareholders owning the remaining 27 %.
Both companies said Roku will continue operating as an open, partner-friendly platform and that customers should see no immediate changes. The merged firm would become the third-largest U.S. television player by share of viewing, combining Fox’s live news, sports and entertainment assets with Roku’s streaming reach and first-party data.
Fox CEO Lachlan Murdoch told investors that the deal positions the company for the next decade of video, while Roku chairman and CEO Anthony Wood said the combination offers an opportunity to accelerate the company’s vision and scale. Wood will join Fox’s board after the transaction closes.
The agreement follows earlier reports that Roku was exploring strategic options, including a possible sale. The deal, pending shareholder and regulatory approval, is expected to close in the first half of next year. Fox’s stock fell before the market opened, whereas Roku’s shares edged higher.