Fox Corp. announced on Friday that it completed its acquisition of Roku to expand its streaming presence that already includes Tubi and FOX One.
The company’s announcement said the combination of FOX’s live sports, news and local programming with Roku’s open connected TV platform reaching over 100 million households will create “new opportunities for the company to serve its viewers, advertisers and partners.”
FOX expects to achieve about $400 million of run-rate cost synergies within two years of the transaction’s close, with additional potential revenue upside, and will be accretive to free cash flow per share by the second full year after closing.
FOX CORPORATION ANNOUNCES $22B ACQUISITION OF ROKU IN LANDMARK STREAMING AND LIVE TV DEAL
Lachlan Murdoch, executive chair and CEO of Fox Corp., said in a statement that the “closing of this acquisition advances the long-term strategy of FOX. Beginning today, our top priority for the combined company is to continue to relentlessly serve audiences and partners, while reinforcing the openness and choice that is the essence of the Roku platform.”
“Our shared entrepreneurial passion and clear conviction toward building the future together with our new Roku colleagues gives us great confidence in the opportunities ahead of us,” Murdoch added.
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Roku founder Anthony Wood will join the FOX board of directors and will also serve as co-chair of FOX Digital Platforms, a newly formed division that includes Roku, Tubi, FOX One, Red Seat Ventures and other digital products and services across the company.
Wood will serve alongside Paul Cheesbrough, who moves into the role of co-chair and CEO of the division.
“We started Roku more than two decades ago to give people a better way to watch TV, and that mission doesn’t change today,” Wood said in a statement. “What does change is our reach and resources. FOX has a deep respect for Roku’s culture and wholly shares our commitment to staying open to every content partner.”
“Our teams will keep building and innovating as they always have, now with the support and capabilities of FOX behind us. I’m proud of what Roku’s employees have built, and I’m excited about what comes next,” Wood added.
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Fox Corp. is the parent company of FOX Business.
