Fox Corp to Acquire Roku in $22 Billion Deal
Fox Corp (NASDAQ:FOXA) has agreed to acquire Roku Inc (NASDAQ:ROKU) in a cash-and-stock deal valued at approximately $22 billion, with a price of $160 per share. The deal includes $96 in cash and the rest in Fox shares, expected to close in Q1 2027.
Key Numbers
Fox Corp (NASDAQ:FOXA) announced Monday it has agreed to acquire streaming platform Roku Inc (NASDAQ:ROKU) in a cash-and-stock transaction valued at approximately $22 billion in enterprise value. Under the terms, Fox will pay $160 per share, comprising $96 in cash and the remainder in Fox shares. The offer represents a 25% premium over Roku's closing price on Friday.
Deal Details
| Item | Value |
|---|---|
| Total Value | $22 billion |
| Price per Share | $160 |
| Cash Component | $96 per share |
| Stock Component | $64 per share |
| Premium | 25% over last close |
| Expected Close | Q1 2027 |
Rationale
Fox aims to strengthen its presence in the streaming sector, leveraging Roku's 80+ million active accounts. The acquisition also diversifies Fox's revenue streams beyond traditional advertising.
Regulatory Challenges
The deal is expected to face regulatory scrutiny, particularly on antitrust grounds. Concerns may arise over Fox's control of news and sports content on a major streaming platform.
Impact on Stocks
Roku shares surged 18% in pre-market trading, while Fox shares fell 2% on concerns about the high price. Analysts are divided on whether the valuation is justified.
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