Fox is buying Roku in latest streaming TV consolidation deal. Stock prices fall for both companies

Fox Corporation is acquiring Roku for $22 billion in a deal announced Monday morning, which is expected to close next year. The acquisition will combine cash and Fox stock, with Fox paying $160 per share. Roku is known for its streaming devices and its streaming channel, The Roku Channel, which features original programming. Fox, the parent company of Fox News and Fox Sports, previously acquired the streaming platform Tubi in 2020 and Red Seat Ventures, a podcasting company, last year. The deal aims to bolster Fox's streaming capabilities by integrating Roku's platform, which is used by over 100 million people, with Fox's sports, news, and other content. In early trading on Monday, Roku's stock price fell approximately 1%, while Fox Corporation's stock price dropped more than 15%, contrasting with the Nasdaq Composite, which rose over 2%. Analysts note that the acquisition aligns with the ongoing consolidation trend in the streaming industry.