Roku is to be bought by the Fox Corporation deal which values the streaming device maker at around $22 billion.
The cash and shares deal will bring together one of the world’s most used streaming platforms with Fox’s Tubi service and its territory-based sports, news and entertainment content.
A statement says that the firms “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.”
In addition to its own line-up of streaming sticks and devices, Roku licenses its software to third-party Smart TV makers, and the statement announcing today’s deal stresses that this will continue.
Lachlan K. Murdoch, Executive Chair and Chief Executive Officer of Fox Corporation, said: “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.
“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.
“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 program 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.”
Anthony Wood, Founder, Chairman and Chief Executive Officer of Roku, said: “Over the past two decades, we’ve built Roku into the leading TV streaming platform, reaching more than 100 million households globally and reshaping how people discover and enjoy entertainment.
“I’m incredibly proud of what our team has built, and the combination with Fox is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers.
“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. I couldn’t be more excited about what we’ll accomplish together.”