The streaming pioneer Roku will be acquired by Fox Corp. in a cash-and-stock deal worth around $22 billion, including debt.
In addition to the Roku channel and its first-party data, the agreement will provide Fox with access to over 100 million households worldwide. In addition to Tubi, which it purchased in 2020, Fox is in charge of a sizable sports, news, and entertainment network.
Anthony Wood, the founder of Roku, first worked for Netflix in the early 2000s as the firm tried to make the radical transition from DVD rentals to streaming.
However, Netflix spun off Roku and launched its first set-top box in 2008.
Wood, the chairman and CEO of Roku, stated that he pursued the technology because he wanted to record and perform his favorite show, “Star Trek.”
Roku will remain an open, partner-friendly platform, the companies announced on Monday. According to Fox and Roku, the merged business will rank third in terms of viewership share in American television.
According to a statement from Fox Corp. CEO Lachlan Murdoch, the merger will combine Fox’s live news and sports content with a widely watched streaming platform. Additionally, it will increase Fox’s exposure to streaming subscriptions and advertising.
In prepared remarks, Wood stated, “The combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster, and innovate more aggressively for viewers, partners, and advertisers.”
After the deal is complete, Wood will continue to work for the company and become a member of the Fox board of directors.
For every existing Roku Class A and Class B share, Fox will pay $96 in cash and 0.9693 shares of its Class A common stock. Each Roku share is worth $160 in this deal.
After the merger is complete, current Fox shareholders are anticipated to possess roughly 73% of the merged business, while Roku stockholders will own roughly 27%.
In the first half of the next year, the deal is expected to close. It still requires regulatory approval in addition to approval from Fox and Roku shareholders.
Before the market opened, Fox’s stock fell, but Roku’s shares marginally increased.
