Fox buys Roku in a $22 billion deal
Fox is purchasing Roku, a streaming company, for $22 billion. The deal will be funded with new debt and cash on hand, backed by a $12 billion temporary loan.
The acquisition marks a shift in media M&A from content ownership to control of streaming platforms. Fox already has live news, sports, and entertainment, and Roku provides the platform where viewers decide what to watch.
Roku’s stock slipped on Monday, but the move needs context, as shares jumped 20% on Friday on deal speculation. Fox’s debt could more than double after the deal, which may explain the sell-off in Fox stock.