Fox to buy streaming pioneer Roku in a $22 billion deal

Key Points:

• Fox Corp. has agreed to acquire Roku in a cash-and-stock deal valued at approximately $22 billion, including debt, aiming to create the third-largest U.S. television player by viewing share.
• Roku will continue operating as an open, partner-friendly platform with no immediate changes for customers, while Fox gains access to over 100 million global households and Roku's first-party data.
• The acquisition combines Fox’s live news, sports, and entertainment content with Roku’s streaming platform, enhancing Fox’s exposure to advertising and subscription revenue.
• Roku founder and CEO Anthony Wood will remain involved and join Fox’s board after the deal closes, with the transaction expected to finalize in the first half of next year pending shareholder and regulatory approvals.
• Fox shareholders will own about 73% of the combined company, while Roku shareholders will hold roughly 27%; Fox’s stock dropped pre-market, whereas Roku’s shares rose slightly following the announcement.