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The deal announced on Monday will give Fox access to the Roku channel, first-party data and more than 100 million global streaming households.
Fox, a media giant that includes sports, news and entertainment content, as well as Tubi, will pay $96 in cash and 0.9693 shares of its Class A common stock for each Roku Class A and Class B share outstanding. The transaction is valued at $160 per Roku share.
Existing Fox shareholders are expected to own approximately 73% of the combined company and Roku shareholders will own about 27%, once the deal closes.
The deal is expected to close in the first half of next year. It still needs approval by Fox and Roku shareholders, as well as regulatory approvals.
“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,” Lachlan K. Murdoch, executive chair and CEO of Fox Corporation, said in a statement on Fox Corp’s website.
Anthony Wood, founder, chairman and CEO of Roku, also made a public statement on the deal.
“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,” he said.