Fox to Acquire Roku for $22 Billion in Streaming Deal

Fox Corp announced on Monday that it will acquire Roku in a cash-and-stock transaction valued at roughly 22 billion dollars, a move that pairs the media company's news and sports channels with one of the largest streaming platforms in the United States. The deal values Roku at 160 dollars per share, an 11.4 percent premium to its most recent closing price, and is expected to close in the first half of 2027.

Under the terms, existing Fox shareholders will own about 73 percent of the combined company. The transaction gives Fox direct control over Roku's network of streaming devices, smart TV software, and The Roku Channel, which together reach more than 100 million households globally. Fox already operates the free ad-supported service Tubi, which it purchased for 440 million dollars in 2020, and launched its own direct-to-consumer platform, Fox One, last year.

Company executives framed the combination as a response to shifting viewer habits. Fox chief executive Lachlan Murdoch described it as the next step in a strategy focused on live content and digital distribution. Roku founder and chief executive Anthony Wood, who will remain in his role and join Fox's board, said the deal would allow faster scaling and more aggressive innovation for viewers, partners, and advertisers. The companies stated that the merged entity would become the third-largest player in U.S. television by share of viewing.

Roku has long positioned itself as an open platform that carries services from many providers, including competitors to Fox. Both companies said they remain committed to keeping Roku accessible to other content suppliers and to the broad distribution of Fox programming. Analysts at J.P. Morgan noted that combining Tubi and The Roku Channel could create a stronger position in the free ad-supported streaming space, where advertising revenue is growing.

Market reaction was mixed in early trading. Fox shares fell about 13 percent in premarket activity, while Roku shares rose modestly before trading was halted. The acquisition marks Fox's largest deal since it sold most of its entertainment assets to Disney in a 71 billion dollar transaction seven years ago. Since that time, Fox has concentrated on its broadcast network, cable channels such as Fox News, and its sports rights, including coverage of the ongoing FIFA World Cup.

The deal arrives as traditional media companies seek greater control over how audiences discover and pay for content. Roku generates the bulk of its revenue from advertising on its platform, with first-quarter ad sales reaching 613 million dollars, up 27 percent from a year earlier. Fox has faced pressure to reduce reliance on cable distribution fees as viewers migrate to streaming. By gaining Roku's installed base, the company gains new tools for targeted advertising and data collection.

Regulatory review is still ahead, though the current environment in Washington suggests limited obstacles for the transaction. The combination reflects a broader pattern of consolidation in the television industry, where scale in both content and distribution has become central to competing with larger technology platforms.