Fox will acquire Roku for $22 billion

The Roku streaming service will be acquired by Fox Corporation for $22 billion, increasing its streaming portfolio. The businesses claim that this acquisition will create the “third-largest player in U.S. television.”

According to Fox, it will buy Roku for $160 a share in a deal that will save $400 million, according to the firms.

The transaction, which unites «the most valuable portfolio of live content and video consumption with the leading streaming platform through which America watches it,» is a «defining moment» for Fox, according to CEO Lachlan Murdoch, the eldest son of tycoon Rupert Murdoch.

As television consumption moves to streaming, the deal provides Fox «greater control over discovery, data, and monetization,» according to Paolo Pescator, an analyst at PP Foresight, who spoke to Reuters.

For every share of Roku that a shareholder owns, they will receive $96 in cash and around 0.97 shares of Fox Class A stock. According to the firms, Fox stockholders will own roughly 73% of the new entity if the deal closes.

In pre-market trade, Fox shares fell more than 11%, while Roku shares increased somewhat (0.8%).