Fox is buying Roku for $22 billion
By Jordan Valinsky, CNN
New York (CNN) — Fox is acquiring Roku, the popular streaming TV platform, in a massive $22 billion deal, the companies announced Monday.
The transaction makes Fox a much more competitive streaming player, combining Fox’s sports, news and entertainment shows, as well its free Tubi streaming service, with Roku’s devices and popular services that reach 100 million people.
Fox has dabbled in streaming over the past few years — finally launching its Fox One competitor last August — but has lacked a serious streaming business with the ability to compete in a space dominated by YouTube, Netflix, Amazon, Disney+, HBO Max, Paramount+ and Peacock. With CNN parent company Warner Bros. Discovery receiving initial US regulatory approval to combine with Paramount, Fox’s purchase of Roku became more urgent.
According to Nielsen’s metrics, YouTube is by far the top-viewed entertainment platform with Netflix in second.
Combining Fox and Roku creates the “third-largest player in US television by share of viewing,” the companies said a press release. Together, they will control more than a 5% share.
“This is a defining moment for Fox, and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade,” said Fox CEO Lachlan Murdoch. “Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it.”
Roku’s platform also carries a number of competitor apps, a trend that will continue, Murdoch said.
“It’s essential that Roku remain open and partner-friendly business,” he said on a call with analysts. “We don’t see that changing at all.”
Fox will buy Roku for $160 per share, a roughly 20% premium of its Thursday’s closing price. On Friday, news of a potential deal elevated its stock with those gains continuing in premarket trading Monday.
Roku founder and CEO Anthony Wood will have an “ongoing role” at the company and will join Fox’s board of directors. He said on the call that the acquisition is “not only a terrific outcome for out shareholders, but a way for Roku to move faster and smarter with the support and resources of a strong partner.”
The deal is expected to close in the first half of 2027 with the companies forecasting $400 million in savings.
The-CNN-Wire
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