Fox Corporation has announced it will acquire Roku, the streaming device company, for approximately 22 billion dollars, or 160 dollars per share. The deal combines Fox's live content library with Roku's streaming platform, which currently reaches more than 100 million households worldwide.
Fox CEO and Executive Chair Lachlan Murdoch described the move as a milestone for the company. "This is a defining moment for Fox and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade," Murdoch said in a statement. "Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it. This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile."
According to Engadget, Fox will pay using a mix of cash and Class A common stock. The two companies say that together they would form the third-largest entity in US television based on viewer share. That ranking is subject to regulatory approval before the deal can close.
Roku founder and CEO Anthony Wood also commented on the agreement. "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," Wood said.
Despite the acquisition, both companies say Roku will continue to function as its own platform. The companies described it as a "partner-friendly platform," meaning other streaming services would still be able to operate through Roku's interface. Fox said the deal gives it access to growth areas in advertising and streaming subscriptions, which it described as a "high growth" segment of the media business.
Roku updated its home screen just last month, the first redesign in a decade. The update added features including increased personalization and a section called "top picks," though the overall look remained largely familiar to existing users.
The acquisition still requires regulatory review before it is finalized.
