Fox, the owner of the news and sports networks, said it has reached a deal to acquire Roku for about $22 billion in enterprise value.
Lillian Rizzo at CNBC:
Fox Corp. has reached an agreement to acquire Roku for roughly $22 billion, marking another chapter in media consolidation as the industry grapples with changing dynamics and mounting challenges. On Monday Fox announced it would acquire Roku for $160 per share in a cash-and-stock transaction. Fox plans to fund the cash portion of the deal with a combination of cash on hand and new debt. The company said it obtained a $12 billion loan for the transaction. Fox’s stock was down 17% in morning trading Monday. Roku fell 2%, though that stock gained 20% on Friday around initial reports of a potential sale. The combination will bring together Fox’s news and sports channels as well as its free ad-supported streamer Tubi with Roku, the maker of streaming devices and also the home of The Roku Channel, a service similar to Tubi.
[...] Murdoch said on Monday’s call with investors that the companies intend to keep Tubi and The Roku Channel separate after the deal closes. He called them “incredibly complementary services” that see about a third of overlap between their audiences.
Fox Corporation buys Roku for $22BN.
