Fox Is Buying Roku

Oh, you thought media consolidation was limited to David Ellison buying two studios? You need to think bigger about how small that world can get. Fox Corporation is buying Roku, Inc., giving the company control of Roku’s connected TV platform. The deal is costing Fox $160 per share, using a combination of cash and Fox stock, and valuing Roku at $22 billion in total. The sale makes Fox, which sold its entertainment company 21st Century Fox to Disney in 2019, a more vertically integrated company. Fox already has sports rights, live broadcasting capabilities, and the popular free streaming service Tubi, but it will now have access to both Roku’s platform and its data. If the deal is approved, it would bring the Fox Corporation into over 100 million homes.

Per a press release, the companies are aiming to keep some parts separate. “FOX and Roku are committed to continuing to operate Roku as an open, partner-friendly platform and to the continued ubiquitous distribution of FOX content,” they said. There is no confirmation yet on if the combined company aims to combine the Roku Channel and Tubi, both of which currently operate as free services. 

“This is a defining moment for FOX, and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade,” Fox CEO Lachlan Murdoch said a statement. “In 2019, we reoriented the company around live news and sports. In 2020, we acquired Tubi, and under our stewardship it has become one of the most successful businesses in streaming. Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it.” 

“The combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster, and innovate more aggressively for viewers, partners, and advertisers,” Roku CEO Anthony Wood added. “That’s why our Board of Directors unanimously determined after concluding its strategic review process that this transaction offers a significant premium to Roku shareholders while also providing them with the opportunity to participate in the compelling future upside of the combined company.” But how will Lachlan Murdoch be as the mayor of Roku City?