FOX has announced it is acquiring popular streaming TV platform Roku as part of a major $22 billion deal. Fox will buy Roku for $160 per share.
The aim is to make FOX a more competitive streaming player – they’ll do this by better combining the company’s sports, news and entertainment properties along with its free Tubi streaming service into Roku’s devices and popular services.
The company’s claim in a press release is that combining the two companies creates the “third-largest player in US television by share of viewing”. Together, they control more than a 5% share. Nielsen indicates YouTube is by far the top-viewed entertainment platform, with Netflix in second.
Despite the launch of Fox One last year, it has lacked a serious streaming business to try to compete with the bigger streamers.
Roku devices are present in more than half of U.S. broadband households, and it has been reported that over 21% of all U.S. TV viewing time occurs on the Roku platform.
The brand awareness outside the United States is incredibly limited, with little to no footprint in the UK, Australia, Canada, Mexico, Brazil, and more. In those countries, the likes of Apple TV, Amazon Fire TV, Chromecast, or smart TV apps are generally used far more.
Roku carries a number of competitor apps, and that trend is expected to continue.
Source: CNN
