Fox Corp. Completes $22 Billion Acquisition of Roku
Fox Corp. has closed its acquisition of streaming platform Roku, a deal valued at $22 billion, well ahead of the expected 2027 date, according to Variety.
Fox Corp. Completes $22 Billion Acquisition of Roku
Fox Corp. has closed its acquisition of streaming platform Roku for $22 billion, ahead of the expected 2027 date. Roku founder Anthony Wood will join the Fox board as co-chair of a new digital division.
In brief
- Fox Corp. closed its $22 billion acquisition of Roku ahead of the expected 2027 date.
- Roku founder Anthony Wood will join the Fox board as co-chair of Fox Digital Platforms.
- Fox expects approximately $400 million of run-rate cost synergies within two years after closing.
- Roku’s platform reaches more than 100 million households.
Leadership and Division Structure
Roku founder and CEO Anthony Wood will join the Fox board of directors. He will serve as co-chair, Fox Digital Platforms, a newly formed division that includes Roku, Tubi, Fox One, Red Seat Ventures and other digital products and services across the company, alongside Paul Cheesbrough, who assumes the role of co-chair and CEO of the division.
Fox Statements
“The closing of this acquisition advances the long-term strategy of Fox,” Lachlan Murdoch, executive chair and CEO of Fox Corp., said in a statement Friday.
Fox Corp. emphasized its position that it will preserve Roku “as a leading open ecosystem for the broader streaming industry.”
“Beginning today, our top priority for the combined company is to continue to relentlessly serve audiences and partners, while reinforcing the openness and choice that is the essence of the Roku platform,” Murdoch said.
Deal Terms and Financial Expectations
In June, Fox announced the agreement to buy Roku for $160/share in a combination of about $14.2 billion in cash and the remainder in Fox Class A common stock.
The Company expects to achieve approximately $400 million of run-rate cost synergies within two years following the transaction close, with additional potential revenue upside, and anticipates that the transaction will be accretive to free cash flow per share by the second full year after closing.
The combination of FOX’s premium live sports, news and local programming with Roku’s open connected TV platform reaching across more than 100 million households creates new opportunities for the Company to serve its viewers, advertisers and partners.
Why it matters
The acquisition combines Fox’s television news, sports and entertainment businesses with Roku’s connected-TV operating system, streaming distribution network and advertising technology. The deal places two major advertising-supported streaming services, Fox’s Tubi and The Roku Channel, under common ownership.
Sources
- variety.com: Fox Closes $22 Billion Roku Deal
- pymnts.com: CPI | Fox’s $22 Billion Roku Takeover Nears US Antitrust Approval
- finance.yahoo.com: Roku Q3 Earnings Beat Forecasts as Revenue Rises 24% Ahead of $25 Billion Fox Acquisition
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
Questions readers ask
- Who completed the acquisition of Roku?
- Fox Corp. has closed its acquisition of streaming platform Roku.
- What is the value of the deal between Fox Corp. and Roku?
- The deal is valued at $22 billion.
- When was the acquisition expected to close compared to the actual date?
- The acquisition closed well ahead of the expected 2027 date.
- Who will serve as co-chair of the new Fox Digital Platforms division alongside Paul Cheesbrough?
- Roku founder and CEO Anthony Wood will serve as co-chair of Fox Digital Platforms alongside Paul Cheesbrough.
- What cost synergies does Fox Corp. expect to achieve within two years following the transaction close?
- The Company expects to achieve approximately $400 million of run-rate cost synergies within two years following the transaction close.
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