Fox Completes $22 Billion Roku Acquisition

Fox Corp. has finalized its acquisition of Roku, bringing the streaming platform into the media company’s business in a transaction completed in less than five months. Fox announced the agreement in June, with a price of $160 per Roku share, paid through a mix of about $14.2 billion in cash and Fox Class A shares. The deal is valued at $22 billion.

Roku founder and chief executive Anthony Wood will take a seat on Fox’s board. He will also become co-chair of Fox Digital Platforms, a newly created division that includes Tubi, Fox One, Red Seat Ventures and Roku. Paul Cheesbrough will serve as the division’s co-chair and chief executive.

Fox says it intends to keep Roku open to content partners across the streaming business. Wood said Roku’s mission would remain unchanged, while the company would gain greater reach and resources through Fox. He also said Roku would continue developing its products with Fox’s support.

Fox expects the combination to generate about $400 million in annual cost savings within two years of closing, with further revenue potential. The company expects the acquisition to increase free cash flow per share by its second full year. Fox said the deal brings its sports, news and local programming together with Roku’s connected-TV platform, which reaches more than 100 million households.