Fox Corp. finished its acquisition of Roku on Friday, expanding its streaming footprint into more than 100 million households.
Fox Corp. closed its $22 billion acquisition of Roku on Friday, absorbing the streaming pioneer well ahead of its original timeline and forming a new digital unit to steer the combined business.
The transaction, which was first unveiled in June, officially brings the company founded in 2002 under Fox’s control, TechCrunch reported. Roku shares stopped trading on the Nasdaq on Friday as the merger completed. Fox said the combination creates the third-largest television business in the United States by viewership, giving the network owner direct access to Roku’s audience of more than 100 million households.
Why the deal matters for Fox
Taking control of Roku provides Fox with one of the primary gateways viewers use to reach programming over broadband connections. The company expects the connected television platform to expand its advertising targeting capabilities and reduce its dependence on traditional broadcast distribution.
Fox plans to place content from Fox Sports, Fox News and its local stations onto Roku’s distribution system, according to The Verge. Roku joins Fox’s existing digital stable, which already features the Fox One streaming service and the free, ad-supported platform Tubi, which Fox purchased in 2020.
Fox said the combination will deliver $400 million in merger-related cost savings within two years, Deadline reported. The company also expects the purchase to lift its free cash flow per share by 2028.
How the merger moved forward
The acquisition closed less than five months after it was proposed in June, moving far faster than the original target of the first half of 2027.
The fast conclusion arrived despite regulatory scrutiny during the summer. The U.S. Department of Justice issued a second request for information two months ago, requiring both companies to provide additional records for an antitrust review. Fox chief executive Lachlan Murdoch indicated earlier this week that international regulators had cleared the transaction, and reports followed that the Justice Department had signed off as well.
Executive changes and a new digital division
To run the combined streaming assets, Fox established Fox Digital Platforms, an umbrella division housing Roku, Tubi, Fox One, Frndly TV and Red Seat Ventures. Paul Cheesbrough, who previously served as Fox’s chief technology officer and president of digital, will serve as co-chair and chief executive of the new division, Variety reported.
Roku founder Anthony Wood joined the Fox board of directors and will serve as co-chair of Fox Digital Platforms alongside Cheesbrough. In a joint memo on Friday, Cheesbrough and Wood told staff, “Together we have premium live sports and news, a growing streaming portfolio, and a leading connected TV platform.”
The unit has set up several operational pillars beneath Cheesbrough. Mustafa Ozgen will serve as chief executive of Roku, while Pete Distad will lead direct-to-consumer brands as chief executive over Tubi, Fox One and Frndly TV. Chris Balfe will head Red Seat Ventures and Robert Humann will lead the financial technology firm Credible.
The reorganization also triggers several high-profile executive departures. Tubi chief executive Anjali Sud is leaving for an outside role but will assist during a transition period, while Mike Bidgoli steps up to become president of Tubi. Charlie Collier, the president of Roku Media and a former Fox Entertainment chief executive, is exiting the company. Roku general counsel Chris Handman and AdRise executive vice president Robyn Peterson are also departing.
Andy Karofsky, co-founder and chief executive of Frndly TV, and Lisa Holme, head of content for The Roku Channel, will both report to Distad. Melody Hildebrandt remains chief technology officer, while executive vice president of platform and media technology Jeff Dow will retire at the close of the fiscal year. Fox ad sales president Jeff Collins will lead advertising sales across the businesses.
Financial terms for shareholders
Under the merger agreement, Roku shareholders receive $95.30 in cash along with 0.9799 shares of Fox Class A common stock for each share of Roku Class A and Class B stock held before the deal closed.
The exchange gives existing Fox stockholders about 74% of Fox’s outstanding common stock, leaving former Roku shareholders with approximately 26%. Wood said the streaming platform will preserve its culture and maintain an open platform for external content partners.
