News Corp Buys Stake in Roku
News Corp. (NASDAQ: NWSA), the diversified global media company, is buying a stake in internet video streaming set-top box maker Roku.
The Associated Press reported that this investment is a part of Roku's fifth round of funding, a $45 million injection. This new round brings the total amount of funding generated since Roku was founded in 2002 to $77 million.
"For us this is a lot of money," said Roku founder and CEO Anthony Wood. "There would be no financial reason for us to go public any time soon."
Roku has sold over 3 million set-top devices this year and it had $100 million in revenue last year. That lead News Corp's chief digital officer (and new Roku board member) Jon Miller to say, "We have watched Roku maintain market leadership since the launch of its streaming platform four years ago and we look forward to deepening our relationship."
The news comes two days after Benzinga reported that News Corp. had promoted Peter Rice as Chairman and CEO of the Fox Networks Group before splitting into two separate companies in 2013.
Benzinga reported in June that News Corp was planning to separate its publishing arm from its entertainment division. In preparation, the company is making a few decisive changes. Fox Sports CEO David Hill will take the bigger role of Senior Executive Vice President. According to Reuters, Rice's job will now have him overseeing sports, Fox broadcasting, and the company's international and cable networks.
The company is desperate to divert attention towards the forthcoming split and away from the ongoing phone hacking court case which has tainted News Corp's reputation for over a year. Former News of the World editors Rebekah Brooks and Andy Coulson will be charged for hacking into the phone of murder victim Milly Dowler.
When the pair allegedly hacked into Dowler's phone, the police and Dowler's parents discovered that her phone account had been accessed, thus believing her to be alive.
On Thursday, News Corp. traded at about $22.48, up roughly 1.8 percent.
Follow me @BCallwood.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.