**Fox Corporation (FOXA) has announced its acquisition of Roku, Inc. (ROKU) in a cash-and-stock deal valued at approximately $22 billion.** The agreement, disclosed on Tuesday, stipulates that Roku shareholders will receive $160 per share, comprised of $96 in cash and 0.9693 shares of FOX Class A common stock. This transaction aims to enhance Fox’s presence in the fast-growing digital streaming market, combining its assets with Roku’s platform, which reaches over 100 million households worldwide.
The deal aligns with Fox’s strategy to diversify from traditional live sports and news into digital platforms, potentially generating $400 million in annual cost synergies and becoming accretive to free cash flow per share within two years. Furthermore, Fox anticipates improved ad targeting and monetization capabilities, given Roku’s significant market presence, particularly in connected TV advertising.
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