Fox to Acquire Roku in $22 Billion Deal
Fox Corporation has announced a cash-and-stock deal to acquire Roku for an enterprise value of approximately $22 billion.
The transaction values Roku at $160 per share, comprising $96 cash and 0.9693 Fox Class A shares per Roku share.
Fox has secured a $12 billion loan from Morgan Stanley Senior Funding to help finance the acquisition.
Key Terms of the Deal:
- Fox shareholders will own 73% of the combined company; Roku shareholders will hold 27%.
- Closing is expected in the first half of 2027.
- Anticipated run-rate cost synergies of $400 million.
- Roku CEO Anthony Wood will join Fox's board.
- Fox's Tubi and Roku will remain separate platforms.
Rangers Sports Network Eyes NBA Local Rights
Rangers Sports Network (RSN), owned by the Texas Rangers, is exploring the acquisition of local broadcast rights for NBA teams previously carried by Main Street Sports Group.
According to the Sports Business Journal:
- RSN may pay teams approximately $15 million or more annually, plus an 85/15 revenue share after production expenses.
- Teams could also sign separate direct-to-consumer deals.
- The NBA is reportedly planning a centralized local media rights solution as early as next year.
RSN stated that no final agreements have been reached.
DOJ Closes Paramount-WBD Merger Investigation
The U.S. Department of Justice has closed its antitrust investigation into the proposed Paramount-Warner Bros. Discovery merger.
According to the Wall Street Journal, career lawyers were leaning toward recommending a lawsuit challenging the combination of movie studios, but the investigation closed before a recommendation was made.
The DOJ stated that the transaction is not likely to harm competition in SVOD, linear TV, or studio activities.
Next Steps:
- Paramount expects the deal to close in the third quarter, targeting July 15.
- If the deal closes, Paramount would own CBS Sports and TNT Sports.
- NHL Commissioner Gary Bettman said the merger could be "potentially very good" for the NHL.
Other Sports Media News
Updates were noted for the FIFA World Cup, ESPN, NBC Sports, and the World Series of Poker, but no further details were provided.