Fox Corporation Buys Roku for $22 Billion: The Birth of the Third American TV Power

The entertainment sector in the United States is undergoing yet another change. Fox Corporation has announced an agreement to acquire Roku in a deal valued at $22 billion. With this transaction, the third player in American TV is born.

Today's announcement comes a few months after Paramount's acquisition of Warner Bros.

Deal Details

The acquisition of Roku by Fox Corporation includes an agreement at $160 per share, with a combination of cash and Fox Class A common stock. Upon completion of the deal, current Fox shareholders will hold approximately 73% of the merged company, while Roku shareholders will hold about 27%. The transaction has been approved by the boards of directors of both companies.

Additionally, Anthony Wood, founder, president, and CEO of Roku, will retain a role in the company resulting from the merger and will join the Fox board of directors upon completion of the deal. As always, the approval of the relevant authorities will be necessary for the completion of the transaction.

The Birth of the Third American TV Power

This deal leads to the formation of a content-rich entertainment hub, with Fox combining its content (sports, news, and entertainment) with all of Roku's content, one of the leading platforms in the streaming industry. The announcement highlights that Fox and Roku will create "a next-generation media and technology company at scale, positioned at the intersection of two of the most important forces redefining video consumption: the enduring primacy of live sports and news events and the ongoing growth of streaming."

By combining Fox's sports, news, and entertainment content along with the streaming services Tubi and The Roku Channel, what is being defined as the third television operator in the United States by audience share is formed.