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Fox Corp Buying Roku In $22B Deal
Deadline • • general
Key Points:
- Fox Corp announced a $22 billion deal to acquire connected TV service Roku for $160 per share, combining cash and Fox Class A stock, valuing Roku at $22 billion and giving Fox shareholders a 73% stake in the merged company.
- Roku, which reaches around 100 million global streaming homes and is in over half of U.S. broadband households, will complement Fox’s extensive portfolio including broadcast networks, cable channels, sports rights, and its ad-supported streamer Tubi.
- The acquisition aims to position Fox as the third-largest U.S. TV player by viewing share, leveraging the rise of streaming alongside live sports and news, with expected cost synergies of around $400 million and accretive free cash flow by the second full year post-closing.
- Fox CEO Lachlan Murdoch emphasized the strategic importance of combining Fox’s live content with Roku’s leading streaming platform to drive growth, while Roku CEO Anthony Wood will maintain an ongoing role and join Fox’s board.
- The deal awaits customary approvals and regulatory clearance, with closing anticipated in the first half of 2027.
