Fox Corp. to buy streaming platform Roku for $22 billion

Fox Corporation has agreed to acquire the streaming platform Roku Inc. in a deal valued at $22 billion, the companies announced Monday.

The deal will combine the Murdoch family’s media assets, which include its news, sports and broadcast channels, with the San Jose-based streaming platform that reaches 100 million consumers globally.

The acquisition would give Fox access to consumer households at a time when the traditional pay TV universe continues its slow decline as viewers move away from cable and satellite services to video streaming. Fox already owns the free ad-supported streaming service Tubi, which recently became profitable.

“This is a defining moment for Fox and a natural extension and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade, “ Fox Corp. Executive Chair Lachlan Murdoch said in a statement.

Fox sold its TV and movie production assets to Walt Disney Co. in 2018. Rather than invest heavily in scripted entertainment to compete with emerging streaming companies, Fox decided to concentrate on sports and news.

Roku shareholders will receive a combination of cash and Fox Corporation stock valued at $160 a share.

The companies say they expect cost savings of $400 million in the combined entity.

Fox Corp. shares were down around 15% on news of the deal, trading at $56.35. Roku shares were up less than 1% to $144.