Fox Closes $22B Roku Acquisition, Creating Streaming Power
Fox Corp. closed its $22 billion acquisition of Roku on Friday. The close came less than five months after the deal was announced.
- 100 million-plus households use Roku, most of them in the U.S.
- $95.30 in cash plus 0.9799 Fox shares goes to Roku holders per share.
- 26% of Fox shares now belong to former Roku stockholders.
- Roku founder Anthony Wood joins Fox's board and co-chairs a new digital division.
Why it matters: Fox now controls Roku, Tubi, Fox One and Red Seat Ventures under one division, Fox Digital Platforms. Fox says the combined company ranks third among U.S. television businesses by viewership.
- Fox plans to use Roku's audience to sharpen ad targeting.
- Fox pledged to keep Roku open to all content partners.
How 8 sources split on this story
Where they split: Coverage differs on whether Roku's open platform will stay neutral under Fox, or whether Fox content will gain prominence on it.
Center coverage, 1 sources: The center treats the deal as a business transaction, focused on terms, the earlier-than-expected close, cost savings and executive roles.
Left coverage, 6 sources: The left sees Fox becoming a streaming power player that now controls a major gateway to American TV, which raises questions about whether the platform stays open.
What’s next: Fox expects about $400 million in annualized cost savings within two years. Variety reads that target as a sign of coming layoffs.
- Paul Cheesbrough becomes co-chair and CEO of Fox Digital Platforms.
- Fox expects the deal to add to free cash flow per share by 2028.
- How will Fox structure Roku's and Tubi's advertising and product teams?
- Will Fox News or Fox One get prominent placement on Roku?
- What did the Justice Department's antitrust review conclude, and on what terms?
