Fox Corp. is acquiring the Roku streaming service for $22 billion: details
15 June 18:55
Fox Corp., known as the parent company of Fox News and the Fox television network, has announced its intention to acquire the streaming company Roku. This $22 billion deal could significantly reshape the media industry landscape.
The New York Times reports this, according to "Komersant Ukrainian".
If the deal is approved, Fox Corp. will gain access to over 100 million households that use Roku-based devices. These devices, with their distinctive black-and-purple remote controls, have become a common sight in living rooms around the world.
The New York Times notes:
“If approved, this deal, which involves payment in cash and stock, will give Fox Corp. access to a massive audience that watches content via Roku.”
Market Reaction
Despite the potential benefits, Fox Corp. shares fell 14 percent during morning trading, reflecting the market’s reaction to the news.
Fox Corp. CEO Lachlan Murdoch stated that the deal combines “the most valuable portfolio of live content with a leading streaming platform.”
This is part of the company’s strategy to reach customers who are turning away from traditional television.
In 2020, Fox acquired Tubi, a fast-growing free streaming service, for $440 million. Last year, the company launched Fox One, a streaming service that brings together content from Fox News and other TV networks in a single app.
As a reminder, Netflix recently announced plans to acquire Warner Bros. Discovery’s studio and streaming businesses, valuing the assets at $82.7 billion.
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In addition, Fox Entertainment has invested in the Ukrainian IT company Holywater, which creates vertical micro-dramas using artificial intelligence.
James Murdoch, through Lupa Systems, is also expanding his presence in the American media by investing in Vox Media.
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