Fox Corporation has agreed to purchase streaming platform Roku in a deal worth $22 billion.

The move is expected to strengthen Fox’s presence in the streaming space. It combines Fox’s TV networks and Tubi service with Roku’s streaming devices and software.

“Together, Fox and Roku will create a scaled next-generation media and technology company positioned at the intersection of two of the most important forces reshaping video consumption: the enduring primacy of live sports and news, and the continued rise of streaming,” the companies said in a joint statement.

Several months ago, Roku announced that its services had reached over 100 million households. At the time, the company also said that it “drives more than three times the engagement of the next leading TV operating system in the US.”

Following the Fox acquisition, the combined company will be the third-largest player in US television in terms of viewership. However, both companies say they "are committed to continuing to operate Roku as an open, partner-friendly platform."

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Fox has agreed to pay $160 per share to complete the acquisition. The payment will be made in a combination of cash plus Fox’s Class A common stock. The acquisition is pending regulatory approval, but it isn’t expected to generate the kind of drama Paramount-Skydance’s acquisition of Warner Bros. did earlier this year.

After Netflix announced an agreement to acquire WBD in December, David Ellison-led Paramount submitted a hostile bid and reached an agreement to take over the company in February. That merger got approval from the US Justice Department last week.

By: DocMemory
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