The deal, valued at approximately US$22 billion, brings the connected TV platform into Fox Digital Platforms, alongside Tubi and Fox One. The company expects to generate US$400 million in annual cost synergies over the next two years.
Fox Corporation completed its acquisition of Roku, Inc. on November 6, marking a new step in its digital expansion strategy and strengthening its position in the streaming and connected TV (CTV) markets.
With the integration, Fox brings Roku, Tubi, Fox One and Red Seat Ventures under its digital business structure, consolidating an ecosystem that combines content, distribution and advertising technology. Roku’s platform reaches more than 100 million households worldwide and provides access to thousands of apps and channels.
The company expects the transaction to generate approximately US$400 million in annual cost synergies over the next two years, in addition to further revenue growth opportunities. It also anticipates that the acquisition will become accretive to free cash flow per share beginning in the second full year following closing.
As part of the leadership structure, Roku founder Anthony Wood will join Fox’s Board of Directors and serve as co-chairman of Fox Digital Platforms, alongside Paul Cheesbrough, who will serve as co-chairman and CEO of the division.
Fox said Roku will continue operating as an open distribution platform for the entertainment industry, maintaining its relationships with content partners and its commitment to providing access to a wide range of services and channels.
Lachlan Murdoch, Executive Chair and CEO of Fox Corporation, said the combined company’s priority would be to continue serving audiences and partners while reinforcing the openness and choice at the core of the Roku platform.
Under the financial terms of the transaction, Roku shareholders received US$95.30 in cash and 0.9799 shares of Fox Class A common stock for each Roku share held. Following the closing, existing Fox shareholders own approximately 74% of the combined company, while former Roku shareholders hold the remaining 26%.
With this acquisition, Fox expands its reach in the US television and streaming market, combining its news, sports and entertainment offering with one of the leading connected TV distribution platforms.
