Key Points
- Fox Corporation has completed its $22 billion acquisition of Roku, combining its television, streaming and digital businesses with Roku’s connected television platform.
- Former Fox shareholders own approximately 74 percent of the combined company, while former Roku shareholders hold 26 percent.
- Fox expects approximately $400 million in annualized cost savings within two years and says Roku will remain an open platform for competing streaming services.
Fox Corporation closed on its $22 billion acquisition of streaming developer Roku on Friday, less than six months after announcing the blockbuster transaction to unite one of the industry’s most-lucrative platforms for connected TV (CTV) advertising with a global media and entertainment juggernaut.
As part of the transaction, Roku is now operated within Fox Digital Platforms, a business unit that also includes Tubi, the streaming service Fox One, podcast-focused Red Seat Ventures and other digital operations.
Under the terms of the transaction, Roku shareholders will receive $95.30 in cash and 0.9799 shares of Fox Class A common stock for each Roku share held before the merger.
Existing Fox shareholders now own approximately 74 percent of the combined company, while former Roku shareholders hold approximately 26 percent. Roku shares will cease trading on the Nasdaq following the acquisition, the companies said in a press release.
Stock Price
Roku’s CTV platform reaches more than 100 million households, giving Fox additional advertising inventory and distribution capabilities alongside its existing television and streaming properties. Fox Executive Chair and CEO Lachlan Murdoch said maintaining Roku’s open distribution model will be a priority for the combined company. Roku will continue supporting competing streaming platforms and content providers rather than becoming an exclusive distribution outlet for Fox programming, he noted.
Roku founder Anthony Wood will join Fox’s Board of Directors and serve as co-Chairman of Fox Digital Platforms alongside Paul Cheesbrough, who has been appointed co-Chair and CEO of the division. Under the new organizational structure, Mustafa Ozgen will continue leading Roku as CEO, while Pete Distad will oversee Fox’s direct-to-consumer businesses, including Tubi, Fox One and Frndly TV.
Mike Bidgoli has been promoted to President of Tubi, reporting to Distad. He succeeds Anjali Sud, who is leaving the streaming service for another position outside Fox. Sud will remain involved during the leadership transition, the company said. Andy Karofsky, the co-Founder and CEO of Frndly TV, and Lisa Holme, the Head of Content for The Roku Channel, will also report to Distad.
The acquisition expands Fox’s presence in connected television advertising, where Roku provides access to streaming audiences through its operating system, advertising technology and The Roku Channel.
It also places Roku alongside Tubi, Fox’s free, advertising-supported streaming service, and Fox One, its direct-to-consumer subscription platform.
Fox said the combined digital businesses will continue operating with an emphasis on consumer choice and distribution partnerships, while the company works to integrate technology, advertising and other operations across its expanded portfolio.
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