Major operation in the star-spangled media. Fox Corporation, the giant that includes sports, information and entertainment content headed by the Murdoch family, has reached an agreement for the purchase of Roku, a company that produces devices that allow you to watch streaming content on TV and which also operates its own platform. The operation is worth 22 billion dollars, approximately 19 billion euros, including cash and shares.
After the announcement in New York, the Fox title drops by more than 15%, while Roku stock are trading down 0,92% at $142.28.
Fox buys Roku at $160 a share, an 11,4% premium.
Fox has put on the table $96 in cash and 0,9693 Class A shares for each outstanding Roku share. The agreement values Roku shares at $160 per sharea 11,4% premium above Friday's closing price of $143,66. Upon closing, Fox shareholders will own 73% of the combined company and Roku shareholders will own 27%. The deal was unanimously approved by the boards of directors of both companies, who expect to close the deal. in the first half of the 2027.
In a statement, Fox explained that this transaction “will strengthen Fox’s long-term growth profile, accelerate its digital strategy, increase free cash flow per share within the second full year following closing, and deliver approximately $400 million in annualized cost synergies with further revenue growth potential.”
Fox, who in 2020 it had already acquired Tubi, One of Roku's main rival platforms, Fox will finance the acquisition with a mix of available cash and new debt and has secured $12 billion in financing from Morgan Stanley for this purpose. After the deal, Fox expects to have net leverage of 2,8 times.
Anthony Wood, Roku's founder, chairman and CEO, will retain a role in the new post-merger entity and will join the Fox boardThe company he leads closed 2025 with revenues of 4,7 billion dollars and a gross operating margin of 2,07 billion.
CEO Lachlan Murdoch: “Crucial moment for Fox”
"This is a pivotal moment for Fox "This is a natural extension of the focused and thoughtful strategy we've been pursuing for nearly a decade. In 2019, we refocused the company on live news and sports. In 2020, we acquired Tubi, and under our leadership, it has become one of the most successful streaming companies. Today, we're taking the next step: combining the most valuable portfolio of live content in video consumption with the leading streaming platform on which Americans watch it," said Tubi. Lachlan K. Murdoch, president and CEO of Fox, and son of founder Rupert Murdoch, who last year took over the family empire, paying his brothers $3,3 billion.
“This combination – continued the CEO – will transform the scope of our company "This acquisition is a significant step forward in our growth strategy. We are executing this acquisition from a position of financial strength, maintaining our investment-rated balance sheet, and providing our shareholders with an uninterrupted capital return program through share buybacks and dividends. Roku pioneered streaming TV and transformed it into a leading CTV platform. Together, we intend to lead its next chapter."
