Fox Corp. has completed its $22 billion acquisition of Roku, the company announced on Friday, consolidating its streaming presence under a newly created digital division. Fox announced the deal in June and has now finished the transaction in November. The purchase allows Fox to add Roku's platform to existing streaming services including Tubi and FOX One.
Fox expects to achieve approximately $400 million in annual cost savings within two years of the deal's close, with potential for additional revenue growth. The company also projects the acquisition will add to free cash flow per share by the second full year following completion. Lachlan Murdoch, executive chair and CEO of Fox Corp., said the acquisition "advances the long-term strategy of FOX." Murdoch stated that the combined company's priority would be to "continue to relentlessly serve audiences and partners, while reinforcing the openness and choice that is the essence of the Roku platform."
Roku founder Anthony Wood has joined Fox's board of directors and will serve as co-chair of FOX Digital Platforms, a new division housing Roku, Tubi, FOX One, Red Seat Ventures and other digital products and services. Paul Cheesbrough moves into the position of co-chair and CEO of the division. Wood said Roku's mission of giving people "a better way to watch TV" remains unchanged. "What does change is our reach and resources," Wood said. "FOX has a deep respect for Roku's culture and wholly shares our commitment to staying open to every content partner."
For American investors and savers, the deal represents significant consolidation in the streaming sector, which could affect competition and content availability across the industry.