Fox confirmed Monday that it is acquiring streaming company Roku in a stock and cash deal valued at around $22 billion. Fox said the deal would create a media and technology company positioned around two trends reshaping video consumption: the continued appeal of live sports and news, and the growth of streaming.
Fox says the deal will create the third-largest television company in the United States. The transaction combines Fox’s news and sports channels, along with its free ad-supported streaming service Tubi, with Roku’s connected TV platform.
The combination will allow for significant audience reach across linear and streaming, Fox says.
The deal gives Fox access to Roku’s audience of 100 million households, helping the company target ads more effectively and rely less on traditional delivery. Fox says the acquisition will give it a “wider entry” into the high growth segment of connected TV, particularly ads and streaming subscriptions.
Fox CEO Lachlan Murdoch called the acquisition a “defining” moment for the company.
