Fox to Acquire Roku for $22 Billion in Media Consolidation Deal

Fox Corp. announced Monday it has reached an agreement to acquire streaming device maker Roku for approximately $22 billion, marking another chapter in media consolidation as the industry grapples with several changes and challenges. The deal addresses the ongoing transformation in how audiences consume content amid the streaming wars. This acquisition follows a broader trend of media companies consolidating assets to compete in the evolving digital entertainment landscape.

Fox Announces $160 Per Share Acquisition Terms

Fox announced it would acquire Roku for $160 per share. Fox's stock was trading down about 13% in premarket trading, while Roku was up about 2%. The transaction values Roku at roughly $22 billion.

Combined Portfolio Brings Together Fox Channels and Roku Streaming Services

The combination will bring together Fox's news and sports channels, as well as its free ad-supported streamer Tubi with Roku, the maker of streaming devices and also the home of The Roku Channel, a service similar to Tubi. Fox's portfolio has primarily been made up of its TV channels, namely broadcast network Fox, which has been airing the FIFA World Cup since last week, and Fox News Channel on cable.

Fox's Historical Deals Include Disney Asset Sale and Tubi Acquisition

The proposed acquisition comes about seven years after Fox's last major deal, when it shed its entertainment assets in a $71 billion deal with Disney. In 2020 Fox acquired Tubi for $440 million. That service had long been its answer to the streaming wars, prior to the announcement of Fox One, its direct-to-consumer option that launched last year.

FAQ

What did Fox Corp. announce on Monday? Fox Corp. announced Monday it has reached an agreement to acquire Roku for approximately $22 billion at $160 per share.

How did Fox and Roku stocks react to the acquisition announcement? Fox's stock was trading down about 13% in premarket trading, while Roku was up about 2%.

What assets will the combined Fox-Roku entity include? The combination will bring together Fox's news and sports channels, its free ad-supported streamer Tubi, Roku's streaming devices, and The Roku Channel.