Fox Corp. (FOX), the media company founded by Rupert Murdoch, has agreed to buy streaming technology maker Roku (ROKU) in a deal valued at $22 billion U.S.
Fox has reportedly agreed to $160 U.S. a share for Roku, which represents a 12% premium to its closing price on June 12.
ROKU stock had gained 20% last Friday as rumors surfaced that an acquisition of the company was imminent.
Roku produces streaming devices and television sets that have its streaming technology embedded in them. The company also distributes streaming services and operates an advertising business.
Currently, Roku is the U.S. market leader in streaming video distribution, reaching nearly half of U.S. households.
Roku originated as an in-house project at Netflix (NFLX), but the streaming giant spun off the company into an independent company before it launched on its platform.
For Fox Corp., buying Roku in a cash-and-stock deal is a big ?bet on streaming, and comes as audiences continue to watch movies and television online.
The deal gives the cable TV-reliant Fox access to Roku’s installed base of more than 100 ?million ?streaming households, helping it sell ads ?and reduce reliance on its Fox traditional TV network.
The deal is expected to close in the first half of 2027. Upon closing, Fox shareholders will own 73% ?of the combined company and Roku shareholders will own the other 27%.
FOX stock is down 9% on news of the Roku acquisition and trading at $53.93 U.S. a share.
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