Fox Corporation has completed its USD 22 billion acquisition of streaming platform Roku, marking a major step in the media company's efforts to strengthen its digital business. The deal combines Fox's sports, news and entertainment programming with Roku's connected TV platform, which reaches more than 100 million households worldwide. The acquisition is expected to give Fox greater access to streaming audiences and new opportunities to expand its advertising business.
The transaction, announced in June, was completed through a combination of cash and stock. Following the deal, existing Fox shareholders own approximately 74% of the combined company, while former Roku shareholders hold the remaining 26%. Roku shares will stop trading on the Nasdaq following the completion.
The deal helps Fox become even more powerful in the world of connected television, which is still drawing in significant capital investments in the forms of streaming platforms and digital ads.
With the help of the Roku platform, thousands of streaming applications and channels will become available. Also, thanks to its technology, Fox will gain direct access to consumers, thus allowing the company to enhance content discovery and offer more accurate ads.
Also Read: MS NOW Adds Roku, Apple TV and Fire TV Support Ahead of US Midterms
The merged venture combines Fox's sports and news programs with the streaming world of Roku. Also, Fox owns Tubi as well as its paid service Fox One.
Fox expects the acquisition to generate approximately USD 400 million in annual cost savings within two years of completion. It also expects the deal to improve free cash flow per share by the second full year after closing.
Roku founder Anthony Wood will join Fox's board of directors and serve as co-chair of its newly established Fox Digital Platforms division. He will lead the division alongside Paul Cheesbrough, who will also serve as co-chair and chief executive.
Also Read: Best Anime Series to Watch for Free on Tubi This Weekend
The new division will bring together Roku, Tubi, Fox One, Red Seat Ventures and other digital products under one business structure. Fox CEO Lachlan Murdoch said the acquisition advances the company's long-term digital strategy. Both companies have also stated that Roku will continue operating as an open platform, maintaining access for content partners across the streaming industry.