Fox Corp announced it will buy Roku for $22 billion in a cash-and-stock transaction, marking the media company's biggest bet yet on streaming. The deal gives Fox control of Roku's operating system and its 80 million-plus active accounts.
A Cash-and-Stock Transaction
The price tag includes a mix of cash and Fox shares. Roku shareholders will get a set amount of Fox common stock plus a cash component for each Roku share they hold. Fox said the combination will let it run Roku's platform alongside its own streaming services, including Tubi and Fox Nation.
Why Fox Wants Roku's Platform
Roku's operating system powers millions of smart TVs and streaming devices. That reach gives Fox a direct way to put its channels and apps in front of viewers without relying on rival platforms. Fox has been pushing into streaming for years, and owning the hardware and software layer could cut costs and boost ad revenue.
What's in It for Roku
Roku has struggled to turn its user base into consistent profit. The Fox offer gives shareholders a premium and the backing of a larger media group. Roku will keep its branding and continue licensing its OS to TV makers, but Fox will call the shots on strategy.
The deal still needs approval from regulators and Roku's shareholders. Both sides expect it to close by the second half of next year.
