Fox Corp. buying major streaming platform in $22 billion deal

Fox Corp. has announced a massive expansion of its digital footprint, entering into a definitive agreement to acquire the streaming platform Roku. The cash-and-stock deal is valued at approximately $22 billion, inclusive of debt.

Strategic Expansion

This acquisition marks a major pivot for Fox, granting the media giant direct access to The Roku Channel, valuable first-party data, and a reach of over 100 million global streaming households. As reported by 205focus.com, the move bolsters a portfolio that already includes a wide range of news, sports, entertainment, and the streaming service Tubi.

Following the merger, the combined entities are projected to become the third-largest player in the U.S. television market by share of viewing. Executives from both companies confirmed on Monday that Roku is slated to continue operating as an open, partner-friendly platform.

Financial Breakdown

Under the terms of the agreement, Fox will provide $96 in cash and 0.9693 shares of its Class A common stock for every share of Roku Class A and Class B stock. The transaction values each Roku share at $160. Once the deal reaches completion, existing Fox shareholders are set to hold roughly 73% of the combined company, with Roku shareholders retaining a 27% stake.

Investors reacted to the news with shifts in share prices; shares of Roku ticked up nearly 3%, while Fox stock saw a decline prior to the market open.

Next Steps

The deal remains subject to standard regulatory scrutiny and the approval of shareholders from both Fox and Roku. If all conditions are met, the companies expect the transaction to close during the first half of next year.