▶️ Today, Fox Corporation announced it has entered into a definitive agreement to acquire Roku for $160 per share, of which $96 will be paid in cash and the remainder in Fox stock. The deal values Roku at $22 billion, but the exact amount Fox will pay is not yet known.

▶️ It is worth noting that the company received $12 billion in fully committed bridge financing from Morgan Stanley for this transaction, so this is likely the approximate amount.

The deal is expected to close in the first half of next year, pending regulatory approvals. This acquisition combines a leader in live news and sports (Fox) with a leading connected TV platform (Roku reaches over 100 million households worldwide, including more than half of all broadband households in the US).

▶️ According to the official press release, "the combination of Fox and Roku will provide access to premium live content, broad distribution, and significant audience reach in both linear and streaming." This move positions Fox across the entire video ecosystem and gives it an entry into the connected TV market, while creating a more powerful streaming platform by combining Fox's premium content and advertising capabilities with Roku's user interface, platform technology, and "direct viewer relationships" to "improve content discovery, deepen engagement, and create a more compelling streaming experience for consumers and content partners."

▶️ Fox will continue to operate Roku as an "open, partner-friendly platform." The combined company will become the third-largest player in US television by viewership share.