The “successful completion” of the acquisition of Roku Inc. by Fox Corporation has come, and as such the parent of Fox Television Stations believes it has entered “a new transformational era – creating an innovative scaled media and technology company with superior reach, engagement and monetization capabilities.”
Specifically, the combination of FOX’s premium live sports, news and local programming with Roku’s open connected TV platform reaching across more than 100 million households is eyed as a way to create new opportunities for Fox Corporation to serve its viewers, advertisers and partners.
“This transaction accelerates FOX’s digital strategy and expands FOX’s business mix towards high-growth streaming and connected TV verticals, strengthening our long-term growth profile,” the company said in a press release distributed November 6, noting that it expects to achieve approximately $400 million of run-rate cost synergies within two years following the transaction close, with additional potential revenue upside, and anticipates that the transaction will be accretive to free cash flow per share by the second full year after closing.
“Importantly, from an operating standpoint, Roku will continue to play its role as a leading open ecosystem for the broader streaming industry,” Fox Corporation said. “A key element of Roku’s ubiquity is the choice it offers viewers and the value it provides to content partners. Together, FOX and Roku will preserve and build on these strengths.”
Roku founder Anthony Wood will join the FOX board of directors and also takes the title of Co-Chair for 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’ll work alongside Paul Cheesbrough, who assumes the role of Co-Chair and CEO for FOX Digital Platforms.
Under the terms of the merger agreement, 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 approximately 74% of the outstanding shares of FOX common stock and former Roku stockholders own approximately 26%.
With the acquisition complete, Roku shares will cease trading on the Nasdaq exchange as of today.
— RBR+TVBR in New York
