dailynewsnblog
NEW Y0RK — Fox Corp. is buying streaming platform Roku in a cash-and-stock deal valued at approximately $22 billion, including debt.
The deal will give Fox access to the Roku channel, first-party data and more than 100 million global streaming households. Fox oversees a massive media network that includes sports, news and entertainment, as well as Tubi.
The companies said Monday that Roku will continue t be run as an open, partner-friendly platform. Fox and Roku said that the combined company will become the third-largest player in U.S. television by share of viewing.
Fox will pay $96 in cash and 0.9693 shares of its Class A common stock for each Roku Class A and Class B share outstanding. The transaction is valued at $160 per Roku share.
Existing Fox shareholders are expected to own approximately 73% of the combined company and Roku shareholders will own about 27%, once the deal closes.
The deal is expected to close in the first half of next year. It still needs approval from Fox and Roku shareholders and also regulatory approval.
Fox’s stock declined before the market open, while shares of Roku rose nearly 3%.
