Fox Corp. and Roku have “entered a definitive agreement” for Fox to acquire Roku for $160 per share that values the streaming company at approximately $22B. Fox is acquiring Roku through a “combination of cash and Fox Class A common stock.” The transaction “combines Fox’s sports, news, and entertainment content and the Tubi streaming service with Roku’s connected TV platform, The Roku Channel, first-party data and direct relationship with more than 100 million global streaming households.” On a pro forma basis, the combined company “will become the third-largest player in U.S. television by share of viewing” (HOLLYWOOD REPORTER, 6/15). The companies “expect the deal to close in the first half of calendar year 2027″ (VARIETY, 6/15).
As of 10am ET Monday morning, Fox Corp. Class A and Roku Inc. stock are both down in early trading (SBJ).
LightShed Partners co-founder Rich Greenfield said the Roku acquisition is a “really interesting strategic move by Fox.” Greenfield, appearing on CNBC’s “Squawk Box,” said, “This is Lachlan Murdoch very definitively saying, ‘This is our future. We’re not going to go out and build a streaming service like everybody else and lose billions of dollars. We’re going to go out and buy the streaming gatekeeper where everybody else needs access to.’” Greenfield noted Roku is the “largest player in streaming what we call the TV operating system,” so Fox is “basically acquiring the leading player.” He added, “Anybody who wants to have a streaming service has to play ball with Roku and it’s given their distribution. As we’ve seen, it’s very hard to not do a deal with Roku.” Greenfield said there also is a “boost that this will give” to the Fox One streaming service (“Squawk Box,” CNBC, 6/15).
