Fox Is Acquiring Roku For $22 Billion In A Massive Streaming Power Play
Shares of Roku surged more than 20% ahead of today's opening bell, no doubt driven by the announcement that the streaming platform has entered into a definitive agreement to be acquired by Fox for $160 per share, valuing the acquisition at $22 billion. The massive deal gives Fox an audience of more than 100 million global streaming households to serve up its sports, news, and entertainment content, as well as its Tubi service, to existing Roku device owners.
In a press release announcing the deal, Roku and Fox say the acquisition enables the two giants to create a scaled next-generation media and technology company, while promising to keep Roku as an open, partner-friendly platform. Notably, Roku recently revamped its smart TV home screen with a heavy focus on AI curation and a large, permanent advertisement.
"I’m incredibly proud of what our team has built, and the combination with Fox is an extraordinary opportunity to accelerate our vision, scale faster, and innovate more aggressively for viewers, partners, and advertisers," Roku Founder, Chairman, and Chief Executive Officer Anthony Wood said in a statement.
Likewise, Fox Corporation Executive Chair and Chief Executive Officer, Lachlan K. Murdoch, called this a "defining moment for Fox" as it looks to extend a nearly decade-long strategy and to reorient the firm around live news and sports.
"In 2020, we acquired Tubi, and under our stewardship it has become one of the most successful businesses in streaming. 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," Murdoch added.
The primary draw for Fox is Roku's sizable footprint in the streaming space, both through its dedicated streaming sticks, set-top boxes, and smart projector, and integration into various smart TV models, including Roku-branded televisions. Fox's portfolio is robust as well and includes heavyweights like the NFL, MLB, NASCAR, Big Ten, FIFA World Cup, Fox News, and Fox Business.
On a pro forma basis, the combined company that emerges from the Roku/Fox deal will become the third-largest player in U.S. television by viewer market share, with a distribution and engagement scale spanning broadcast, cable, local, and streaming.
