Summary
Fox Corporation (FOXA) has announced a definitive agreement to acquire Roku, Inc. (ROKU) in a two-step merger transaction. Under the terms of the agreement, Roku shareholders will receive a combination of Fox Class A Common Stock and cash for each share of Roku common stock. The transaction is structured to ensure that 40% of the aggregate merger consideration will be in the form of Fox Class A Common Stock, with the remaining 60% in cash, subject to adjustments for fractional shares and potential changes to account for dissenting shares. This significant acquisition aims to expand Fox's presence and capabilities in the digital media and streaming landscape. The deal is subject to customary closing conditions, including regulatory approvals (such as HSR Act clearance) and the approval of both Fox and Roku stockholders. Significant voting agreements are in place, with Roku's founder and CEO, Anthony Wood, and related entities, who collectively hold approximately 55% of Roku's total voting power, agreeing to vote in favor of the merger. Similarly, entities associated with Lachlan Murdoch and his siblings, holding approximately 38.7% of Fox's voting power, have agreed to support the stock issuance required for the transaction. Fox has secured $12 billion in bridge financing to support the acquisition.
Key Highlights
- 1Fox Corporation (FOXA) to acquire Roku, Inc. (ROKU) in a stock and cash transaction.
- 2Roku shareholders to receive 0.9693 shares of FOXA Class A Common Stock and $96.00 in cash per share.
- 3The aggregate merger consideration will consist of 40% Fox Class A Common Stock and 60% cash.
- 4Transaction is subject to customary closing conditions, including regulatory and stockholder approvals.
- 5Roku's founder and CEO, Anthony Wood, and related entities, holding 55% of Roku's voting power, have agreed to support the deal.
- 6Fox has secured $12 billion in bridge financing for the acquisition.
- 7The merger agreement includes customary termination rights and significant termination fees for both parties, including a regulatory termination fee payable by Fox.