Fox Corporation and Roku, Inc. have entered into a definitive agreement under which FOX will acquire Roku for $160.00 per share in a combination of cash and FOX Class A common stock, valuing Roku at approximately $22 billion in enterprise value.
The transaction combines FOX’s sports, news, and entertainment content and the Tubi service with Roku’s leading connected TV platform, The Roku Channel, first-party data and direct relationship with more than 100 million global streaming households.
Together, FOX and Roku said they will create “a scaled next-generation media and technology company positioned at the intersection of two of the most important forces reshaping video consumption: the enduring primacy of live sports and news, and the continued rise of streaming”.
FOX and Roku said they will continue to operate Roku as “an open, partner-friendly platform” and also maintain the current strategy of ubiquitous distribution of FOX content.
Lachlan K. Murdoch, executive chair and CEO of Fox Corporation (pictured), said: “This is a defining moment for FOX, and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade. In 2019, we reoriented the company around live news and sports. In 2020, we acquired Tubi, and under our stewardship it has become one of the most successful businesses in streaming. Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it. This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile.”
Anthony Wood, founder, chairman and CEO of Roku, added: “Over the past two decades, we’ve built Roku into the leading TV streaming platform, reaching more than 100 million households globally and reshaping how people discover and enjoy entertainment. I’m incredibly proud of what our team has built, and the combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster, and innovate more aggressively for viewers, partners, and advertisers.”
According to Fox and Roku, the strategic benefits of the combination include increased scale and reach, an expanded position in high-growth verticals, a more powerful streaming platform and a stronger long-term growth profile.
