Fox to Acquire Roku in $22 Billion Streaming Expansion
Fox Corp. has agreed to acquire Roku Inc. for approximately $22 billion, including debt. This strategic move aims to bolster Fox's presence in the ad-supported streaming sector by integrating its diverse content, including sports, news, entertainment channels, and Tubi, with Roku's extensive streaming platform, which serves over 100 million subscribers. The combined entity is projected to become the third-largest player in the U.S. television market by viewing share.
Fox Corp. announced its agreement to acquire Roku Inc. in a deal valued at approximately $22 billion, which includes debt. This acquisition is positioned as a significant push into ad-supported streaming, intending to establish a new major force in the television industry.
The deal will merge Fox’s portfolio of sports, news, and entertainment channels, notably its free, ad-supported streaming service Tubi, with Roku’s streaming platform. Roku currently boasts more than 100 million subscribers, according to statements released by both companies on Monday.
This combination is expected to create the third-largest entity in the U.S. television market when measured by share of viewing. This encompasses various segments, including broadcast, cable, local, and streaming.
Lachlan Murdoch, Chief Executive Officer of Fox, stated that the acquisition would "transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile." The move underscores Fox's strategy to expand its reach and capabilities within the evolving media landscape.
According to Bloomberg Markets, the acquisition represents a substantial investment by Fox into high-growth digital media sectors.
