Fox Corp. is holding investor calls ahead of a planned bond sale to finance its cash-and-stock acquisition of Roku Inc. The broadcaster expects to issue investment-grade notes in about seven parts, with maturities ranging from three to 40 years. Fox closed its purchase of Roku on Friday, months ahead of the initially anticipated timeline. The transaction carried a $22 billion enterprise value.
To fund the cash portion, Fox borrowed $8.4 billion under a bridge facility and $2 billion under a term loan agreement with Morgan Stanley, which had provided $12 billion in committed financing. Roku’s streaming platform has over 100 million subscribers. The combined entity will become the third-largest player in the US television market by viewing share across broadcast, cable, local, and streaming.
Fox previously acquired Tubi in 2020, which has since become a major growth engine. Merging Tubi with Roku will expand Fox’s presence in free, ad-supported streaming as consumers shift toward cheaper, ad-supported plans.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing