Fox Corp said Friday that it completed its $22 billion acquisition of streaming giant Roku, in a major move to bolster the broadcaster’s advertising business, as well as grow the online reach of its sports and news programming.
The deal, which was announced in June, is a cash-and-stock transaction that will give Fox access to more than 100 million households courtesy of Roku’s platform.
“The closing of this acquisition advances the long-term strategy of Fox,” Fox Corp Executive Chair and CEO Lachlan Murdoch said in a statement.
“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.”
He added: “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.”
As part of the deal, Roku founder Andy Wood will join the Fox board. He will also serve as co-chair of Fox Digital Platforms, the newly-formed division that includes Roku, Tubi, Fox One, Red Seat Ventures and other digital products and services across the company.
He will work alongside Paul Cheesebrough, who is taking on the role of co-chair and CEO of Fox Digital Platforms, according to Fox.
“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. “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,” he added. “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.”
Under the terms of the deal, Roku stockholders are entitled to receive $95.30 in cash and 0.9799 shares of Fox Class A common stock for each share of Roku Class A and Roku Class B common stock they owned immediately prior to closing.
As a result of the transaction, Fox stockholders own about 74% of the outstanding shares of Fox common stock and former Roku stockholders own approximately 26%.
Roku shares cease trading on the Nasdaq as of Friday.