Fox Corp has reached a definitive agreement to acquire Roku in a deal worth $22 billion.
Rumours that the streaming company was up for sale first surfaced over the weekend.
“Together, Fox and Roku will create a scaled next-generation media and technology company positioned at the intersection of two of the most important forces reshaping video consumption: the enduring primacy of live sports and news, and the continued rise of streaming,” said Fox in a statement.
“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.”
According to the company, the acquisition brings together Fox’s premium content and advertising capabilities with Roku’s consumer interface, home screen, platform technology and direct viewer relationships.
Lachlan Murdoch, CEO of Fox said: “This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile. And we are executing this acquisition from a position of financial strength—maintaining our investment grade balance sheet while providing our shareholders with an uninterrupted return of capital programme in the form of share buybacks and dividends. Roku pioneered streaming TV and scaled it into a leading CTV platform. Together, we intend to lead its next chapter.”
Roku was founded in 2002 by Anthony Wood, who is still the company’s CEO.
The deal is subject to customary closing conditions, including approvals by Fox and Roku shareholders, as well as regulatory approval.
