Fox to acquire Roku for US$22 billion in streaming push

On Monday, Fox Corp announced its acquisition of Roku in a cash-and-stock transaction worth approximately US$22 billion. This move allows Fox to tap into Roku's streaming platform, which serves over 100 million households, as part of its strategy to adapt to the shift towards online viewership. This marks Fox's first significant acquisition since Lachlan Murdoch took control after a family settlement last year. Roku shareholders will receive US$96 in cash along with around 0.97 Fox Class A shares per share, equating to an offer of US$160 per share—a 33.7% premium over Roku's closing price on Thursday. In early trading, Fox shares dropped nearly 17% due to dilution worries, while Roku fell by 2.5% to US$140.10. Roku's revenue from advertising reached US$613 million in Q1, reflecting a 27% increase year-on-year. Lachlan Murdoch described the acquisition as a "defining moment" for Fox.