Fox to buy Roku in $22 billion deal to accelerate shift to digital
CNBC • • business
Key Points:
- Fox Corp is acquiring Roku in a cash-and-stock deal valued at approximately $22 billion, aiming to strengthen its position as audiences shift toward online streaming by combining its sports and news content with Roku's platform.
- The deal offers Fox direct access to Roku's over 100 million streaming households, enhancing targeted advertising capabilities and reducing reliance on traditional cable distribution.
- Fox will pay $160 per share for Roku, an 11.4% premium over Roku's last closing price; Fox shares dropped 8% in premarket trading, while Roku shares were halted.
- Roku, a pioneer in streaming platforms on connected TVs, generates most of its revenue from advertising and subscriptions, with advertising revenue reaching $613 million in Q1, up 27% year-on-year.
- The combined entity is projected to become the third-largest U.S. TV player by viewing share, with Fox shareholders owning about 73% and Roku shareholders about 27% post-merger, expected to close in the first half of 2027.
