Fox has bought Roku in a deal that could transform the TV giant into a free streaming powerhouse.
The $22 billion deal will help Fox scale its advertising business while giving it control of The Roku Channel (aff) in addition to Tubi, the second- and third-largest free streaming services by US TV viewership. (YouTube is the clear No. 1.)
Fox’s digital platforms business will be co-led by Paul Cheesbrough and Anthony Wood, the company said in its Friday announcement. Cheesbrough had overseen Tubi Media Group, which includes Tubi, subscription streamer Fox One, and the creator network Red Seat Ventures. Wood founded Roku and had been its CEO.
“Together we have premium live sports and news, a growing streaming portfolio, and a leading connected TV platform,” Cheesbrough and Wood told employees on Friday morning in a memo viewed by Business Insider.
As part of the deal, Roku executives Charlie Collier and Chris Handman are departing, as is Robyn Peterson, the EVP of AdRise, an adtech platform owned by Fox.
Tubi CEO Anjali Sud is also leaving for “a new role outside of the company,” the memo said.
Mustafa Ozgen will be Roku’s new CEO. He was formerly its president of devices, products, and technology. Pete Distad will continue to lead Fox’s streaming business, which will now include Tubi and Frndly TV, a live TV service.
Here are the five top goals for Fox after buying Roku, according to Cheesbrough and Wood’s memo:
- “Grow Platform Share and Engagement: Expand connected TV device sales and platform engagement through affordability, simplicity and creative partnerships.”
- “Lead in Free Ad-Supported Streaming: Be a top destination for movies, TV shows, podcasts and creator content.”
- “Lead in Premium Subscriptions: Build a compelling destination and bundling ecosystem for premium subscriptions.”
- “Win in Performance Advertising: Invest in AdTech, data and go-to-market capabilities to become the premier advertising partner at scale.”
- “Grow our…