Acquisition will bolster Tubi owner’s advertising operations, while $400m of savings are planned
Fox has agreed a $22bn deal to buy TV platform and AVoD channel operator Roku.
News that Roku was in talks with a US player emerged over the weekend and the Lachlan Murdoch-led Fox has now confirmed it will pay $160.00 per share for the US platform, a bump of more than 11% on its close on Friday that gives the company a $22bn enterprise value.
The deal will see Tubi owner Fox taking charge of Roku’s TV platform, The Roku Channel, as well as the device manufacturer’s data and relationship with more than 100 million global streaming households.
It will allow Fox to expand its advertising offering and the companies said they would create a “scaled, next-generation media and technology company” combining live sports and news, and streaming.
Fox will pay $96.00 in cash and 0.9693 shares of Fox for each Roku share, with $400m of synergy saving identified. Roku chief exec Anthony Wood will remain with the company following the deal although his position has not yet been confirmed.
Shares in Fox dived 8% on the news, with the US broadcaster saying it would operate Roku as “an open, partner-friendly platform”.
The deal, which both companies’ boards have approved, will expand Fox’s ad-supported streaming operations, which include Tubi. Roku makes most of its money from advertising, with its Q1 revenues up 27% to $613m.
The combined company will become the third-largest player in US television by share of viewing, with the deal expected to close in the first half of 2027. Fox will own around 73% of the combined firm, while Roku will have a 27% stake.
Lachlan Murdoch, chief executive officer of Fox Corporation, described the deal as a “defining moment” for his company following the sale of its entertainment assets to Disney and its purchase of Tubi in 2020.
He said the deal would “transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile.”
“Roku pioneered streaming TV and scaled it into a leading CTV platform. Together, we intend to lead its next chapter.”
Anthony Wood, who founder Roku in 2002 and is its chief exec, added: “I’m incredibly proud of what our team has built, and the combination with Fox is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers.”
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