Fox Corp. is poised to significantly expand its digital footprint with the acquisition of streaming platform Roku in a cash-and-stock deal valued at approximately $22 billion, including debt.
The strategic move will grant Fox access to the popular Roku Channel, valuable first-party data, and a vast audience of over 100 million global streaming households, complementing its existing media network of sports, news, entertainment, and Tubi.
The companies confirmed on Monday that Roku will continue to operate as an open, partner-friendly platform.
Upon completion, the combined entity is projected to become the third-largest player in U.S. television by viewing share.
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 the transaction at $160 per Roku share.
Existing Fox shareholders are expected to own approximately 73% of the combined company, while Roku shareholders will hold about 27%.
The deal is anticipated to finalize in the first half of next year, pending approval from both Fox and Roku shareholders, as well as regulatory bodies.
Following the announcement, Fox's stock declined before the market opened, while Roku's shares surged nearly 3%.
