Roku has a new owner, and its Fox. In what was a surprise deal for many, it seems that Fox itself may be looking to upscale its streaming presence. Or, at least, it’s streaming ad revenue. Our entertainment lawyer in the know, Blake & Wang P.A.’s Brandon Blake, takes a look at the story.
$22B Acquisition
There is a notable thread that connects the two, of course. Fox, since it sold off its film studio to Disney, has been more about showcasing others’ IP than creating its own. Roku, which has been one of the most unnoticed success stories in recent entertainment history, also has a limited slate of originals, but mostly makes its cash by making it easier for viewers to watch other studios’ content. What is odd, however, is that Fox has been skeptical of streaming for a while now. However, it’s likely the lure of the advertising bucks it can generate that’s driven this deal, especially as Fox has recently become the first company to close out its Upfronts inventory.
Together, but Independent
With both companies’ stats combined, they will now account for about 10% of monthly TV viewing in the US, which could be enough to edge them ahead of Netflix and Paramount. Roku is, of course, one of the most dominant companies in the connected TV market at present, and its free TV services will make a nice complement to those on offer through Tubi, Fox’s existing FAST streamer.
While the deal isn’t expected to close until early next year, it is believed that Fox will probably continue to operate Roku as an independent subsidiary, letting it take advantage of expanded streaming ad inventory and controlling its distribution strategy without having to change Fox’s underlying current strategy. All in all, it will be an interesting new turn for the books to see where this deal ends up.
Film and Television 