Fox Closes On Roku Streaming

Fox Corp. said Friday it completed its acquisition of Roku, adding the streaming platform to a portfolio that includes Tubi and FOX One.

The companies said the deal combines Fox’s live sports, news and local programming with Roku’s connected-TV platform, which reaches more than 100 million households. The combination is expected to create new opportunities to serve viewers, advertisers and partners, they said.

Fox expects to achieve about $400 million in annualized cost savings within two years of closing, with potential for additional revenue. The company also expects the deal to increase free cash flow per share by its second full year after closing.

Lachlan Mudoch

“Closing this acquisition advances the long-term strategy of FOX,” Fox Corp. Executive Chair and CEO Lachlan Murdoch said. He said the company’s priority is to serve audiences and partners while preserving the openness and choice of Roku’s platform.

Roku founder Anthony Wood will join Fox’s board and serve as co-chair of FOX Digital Platforms, a new division that includes Roku, Tubi, FOX One, Red Seat Ventures and other digital products and services. Paul Cheesbrough will serve as the division’s co-chair and CEO.

Wood said Roku’s mission of giving people a better way to watch TV would not change, adding that Fox shares the company’s commitment to remaining open to content partners. He said Fox’s resources would support the teams’ continued work and innovation.