Fox to buy Roku for $22 billion
CNBC • • general
Key Points:
- Fox Corp. has agreed to acquire Roku for approximately $22 billion in a cash and stock deal valued at $160 per share, funded partly by a $12 billion loan and cash on hand.
- The merger will combine Fox's news, sports channels, and free ad-supported streamer Tubi with Roku's streaming devices and The Roku Channel, enhancing their streaming and advertising capabilities.
- Fox CEO Lachlan Murdoch described the acquisition as a "defining moment," highlighting Fox's strategic shift since 2019 toward live news, sports, and advertising-driven revenue growth.
- The deal is expected to generate around $400 million in annual cost synergies, with Fox shareholders owning about 73% and Roku shareholders 27% of the combined company.
- The transaction, approved by both companies' boards, is anticipated to close in the first half of 2027 amid ongoing media industry consolidation.
