Fox and Roku strike $22 billion merger deal to expand streaming reach

Fox Corp. has agreed to buy streaming company Roku in a cash-and-stock deal valued at about US$22 billion, including debt, in one of the biggest media mergers of the year.

The agreement will give Fox access to more than 100 million households worldwide, along with Roku’s streaming platform, advertising business and viewer data.

Fox, which already owns sports, news and entertainment networks as well as streaming service Tubi, said the combined company would become the third-largest player in US television by viewing share.

Roku founder and chief executive Anthony Wood said the deal would help accelerate the company’s growth plans.

“The combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers,” Wood said in prepared remarks.

Wood founded Roku after previously working at Netflix during the company’s early move into streaming. Roku later launched its first streaming box in 2008.

Fox chief executive Lachlan Murdoch said the deal would combine Fox’s live sports and news content with Roku’s large streaming audience and advertising platform.

Under the agreement, Fox will pay US$96 in cash plus shares for each Roku share outstanding. Existing Fox shareholders are expected to own about 73 per cent of the merged company.

The deal is expected to close in the first half of next year, pending shareholder and regulatory approval.