Fox Corporation has agreed to acquire streaming platform Roku in a cash-and-stock deal valued at approximately $22 billion, a move that would combine one of the largest content producers in the United States with a platform used by millions of streaming viewers.
Under the terms of the agreement, Fox will pay $96 in cash and 0.9693 shares of its Class A common stock for each outstanding Roku Class A and Class B share, valuing Roku at $160 per share. Following the transaction, existing Fox shareholders are expected to own approximately 73% of the combined company, while Roku shareholders will own about 27%.
The deal is expected to close in the first half of next year, pending approval from shareholders of both companies and regulatory authorities. Following the announcement, Fox shares declined in premarket trading, while Roku shares rose slightly.
Fox executives believe the acquisition will strengthen the company’s position as audiences continue shifting toward streaming services and connected television. Speaking during a conference call, Fox CEO Lachlan Murdoch said the combined company would be better positioned for the next decade of video than either company could be on its own.
“We are confident this is the right transaction, at the right moment, for all the right reasons,” Murdoch said.
The acquisition marks a significant milestone for Roku, a company whose roots trace back to Netflix’s early streaming ambitions. Roku founder and CEO Anthony Wood worked at Netflix in the early 2000s as the company explored the transition from its DVD-by-mail business to online video streaming. Roku was later spun off from Netflix and launched its first streaming set-top box in 2008.
Wood has previously said that part of his motivation for developing the technology came from a simple personal desire: to be able to record and watch his favorite television show, “Star Trek.” Over the years, Roku evolved from a hardware maker into one of the most widely used streaming platforms in the world.
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By combining Fox’s portfolio of news, sports, entertainment, and streaming assets with Roku’s platform, advertising technology, and user base, the company hopes to create a stronger competitor in an increasingly crowded media landscape.
If approved, the acquisition will unite one of America’s largest media companies with one of the world’s most popular streaming platforms, potentially reshaping how content is distributed and consumed in the years ahead.
