Business 5 min read By Trevor Kendall
Fox Shareholders Approve $22 Billion Roku Acquisition
Shareholders of both Fox and Roku have approved Fox's $22 billion cash-and-stock acquisition of the streaming platform, a deal announced in June that is expected to significantly expand Fox's streaming capabilities.
Shareholders of both Fox and Roku have approved Fox's planned acquisition of the streaming platform for $22 billion in cash and stock, clearing a major hurdle for one of the largest media mergers of the year. The approvals came during special meetings held by both companies and were widely expected.
The deal, announced in June, calls for Fox — led by chief executive Lachlan Murdoch — to acquire Roku for $160 per share in a combination of cash and stock. The transaction is designed to turbocharge Fox's streaming capabilities, giving the company control of a major streaming hardware and software platform at a time when media companies are racing to scale their direct-to-consumer offerings.
Roku operates one of the most widely used streaming operating systems in the United States, with millions of households using its devices and software to access streaming services. Acquiring the platform would give Fox a direct pipeline to consumers and a significant foothold in the connected television market, where advertising and distribution increasingly overlap.
The shareholder votes mark a key milestone in the regulatory and corporate approval process. While the approvals were anticipated, they formally move the transaction closer to completion. The deal still faces regulatory review, and the companies will need to secure the necessary clearances before the acquisition can close.
Fox's move for Roku comes amid a broader wave of consolidation in the media industry, as traditional entertainment companies seek to strengthen their streaming businesses and compete with larger technology platforms. The acquisition would combine Fox's content and broadcasting assets with Roku's streaming distribution network, potentially creating a more integrated offering for advertisers and viewers alike.
Under the terms announced in June, Roku shareholders would receive $160 per share, a figure that reflects the premium Fox is willing to pay to secure the platform. The cash-and-stock structure allows Fox to use a combination of its balance sheet and equity to fund the purchase, balancing the cost of the deal against the strategic benefits of owning a major streaming gateway.
For Fox, the acquisition represents a significant bet on the future of streaming. The company has invested in its own streaming properties, including Tubi, and the addition of Roku would expand its reach across the connected TV ecosystem. Roku's platform generates revenue through advertising, subscriptions, and hardware sales, giving Fox multiple avenues to monetize the combined business.
The deal's approval by shareholders of both companies removes a layer of uncertainty that had surrounded the transaction since it was first announced. With the votes secured, attention now turns to the remaining regulatory steps and the integration planning that will follow if the acquisition is completed.
Media analysts have described the deal as transformative for Fox's streaming ambitions, though it also carries execution risks. Integrating a hardware and software platform with a traditional media company's operations is complex, and the combined entity will need to navigate a competitive landscape dominated by well-capitalized technology firms.
Roku's shareholders approved the merger at their own special meeting, satisfying a condition of the agreement. The dual approvals underscore the mutual interest in seeing the transaction proceed, even as the broader media sector continues to evolve rapidly.
If completed, the acquisition would rank among the largest media deals in recent years, reflecting the intense pressure on entertainment companies to scale their streaming operations. Fox has not indicated any changes to the deal terms following the shareholder votes, and the companies are expected to continue working toward closing the transaction.
21
