Fox to buy Roku in $22 billion deal to accelerate shift to digital

Fox Corp. has reached an agreement to acquire Roku

for roughly $22 billion, marking another chapter in media consolidation as the industry grapples with changing dynamics and mounting challenges.

On Monday Fox announced it would acquire Roku for $160 per share in a cash-and-stock transaction. Fox plans to fund the cash portion of the deal with a combination of cash on hand and new debt. The company said it obtained a $12 billion loan for the transaction.

Fox’s stock was down 17% in morning trading Monday. Roku fell 2%, though that stock gained 20% on Friday around initial reports of a potential sale.

The combination will bring together Fox’s news and sports channels as well as its free ad-supported streamer Tubi with Roku, the maker of streaming devices and also the home of The Roku Channel, a service similar to Tubi.