Media giant Fox Corporation has acquired digital entertainment platform and streaming enabler Roku. The acquisition cost is reported to be $22 billion, or $126 per share. That valuation is a 34% premium over Roku’s closing stock price at deal time.
Morgan Stanley is involved in the financing, reportedly providing a $12 billion dollar bridge loan. We learn that existing Fox shareholders will own about 73% of the combined company; Roku shareholders come away with 27%.
Fox CEO Lachlan Murdoch calls the deal a “defining moment.” From his company’s perspective, one key strategic win is access to Roku’s wealth of consumer data. The company is best known for its hardware streaming device which plugs into TV via HDMI, and a key takeaway for Fox is access to Roku’s valuable first-party consumer data and ad-targeting — those data represent over 100 million global streaming households (according to the Roku Newsroom HERE).
Roku’s PR offers that the device will continue to operate as an “open, partner-friendly platform.”
A often the case with takeovers, Roku CEO and Founder Anthony Wood will join the acquiring board.
