Fox completes $22B acquisition of Roku
What's the story
Fox Corporation has successfully completed its $22 billion acquisition of streaming giant Roku. The deal, which was first announced in June, is a cash-and-stock transaction. It will give Fox access to over 100 million households through Roku's platform. The move is part of Fox's strategy to strengthen its advertising business and expand the online reach of its sports and news programming.
Executive remarks
Lachlan Murdoch on the acquisition
Commenting on the acquisition, Fox Corp Executive Chair and CEO Lachlan Murdoch said, "The closing of this acquisition advances the long-term strategy of Fox."
He emphasized that their main focus for the combined company would be to serve audiences and partners while maintaining the openness and choice that define Roku.
Murdoch also expressed confidence in future opportunities with their new Roku colleagues.
Leadership changes
Roku founder to join Fox board
As part of the acquisition deal, Roku founder Anthony Wood will be joining the Fox board.
He will also serve as co-chair of Fox Digital Platforms, a new division that includes Roku, Tubi, Fox One, Red Seat Ventures, and other digital products and services across the company.
Wood will work with Paul Cheesebrough who is taking on the role of co-chair and CEO of this new division.
Acquisition details
Deal in numbers
Under the terms of the deal, Roku stockholders will get $95.30 in cash and 0.9799 shares of Fox Class A common stock for each share of Roku Class A and Roku Class B common stock they owned before closing.
Following this transaction, Fox stockholders own about 74% of the outstanding shares of Fox common stock while former Roku stockholders own approximately 26%.