Fox to Acquire Roku for $22 Billion in Streaming Deal

Fox Corp announced Monday that it will acquire Roku in a cash-and-stock deal valued at roughly $22 billion, a move that would combine the conservative-leaning media company's news and sports channels with one of the largest streaming platforms in the United States. The agreement, which values Roku at $160 per share, represents an 11.4 percent premium over its recent closing price and marks Fox's most significant expansion since selling most of its entertainment assets to Disney seven years ago.

Under the terms, Fox would gain direct access to Roku's network of more than 100 million streaming households worldwide, along with its hardware devices, smart TV software and The Roku Channel. The combined entity would become the third-largest player in U.S. television by viewing share, according to statements from both companies. Fox already operates the free ad-supported streamer Tubi, which it purchased for $440 million in 2020, and launched its own direct-to-consumer service, Fox One, last year. Pairing these assets with Roku's platform is expected to strengthen Fox's position in targeted advertising as audiences continue shifting away from traditional cable.

Fox Chief Executive Lachlan Murdoch described the transaction as a natural extension of the company's strategy, emphasizing the value of linking what he called the most valuable live content portfolio with the platform through which many Americans now watch television. Roku founder and Chief Executive Anthony Wood, who is expected to join Fox's board, said the deal would allow the company to scale faster and innovate more aggressively. Both firms stated they remain committed to keeping Roku an open platform that works with other content providers.

The deal still requires regulatory approval and is expected to close in the first half of 2027. Existing Fox shareholders would own about 73 percent of the combined company. In early trading, Fox shares fell as much as 13 percent while Roku shares were halted.

The acquisition comes at a time when streaming has overtaken traditional pay television for many households and advertising dollars have followed. Roku generated $613 million in advertising revenue in its most recent quarter, up 27 percent from a year earlier. Analysts have noted that combining Tubi and The Roku Channel could create a dominant force in free ad-supported streaming. Yet the transaction also raises questions about further consolidation in an industry already dominated by a handful of large players.

Fox's portfolio centers on its broadcast network, which is currently airing the FIFA World Cup, and its cable news channel. Critics have long argued that Fox News exerts significant influence over political discourse in the United States. Adding control over a major distribution platform could amplify that reach by shaping how millions of viewers discover and access news and entertainment. While the companies pledged to maintain an open ecosystem, past patterns of media mergers suggest that integration often leads to preferential treatment for affiliated content.

The broader trend of consolidation in streaming and traditional media has drawn scrutiny from lawmakers and consumer advocates concerned about reduced competition and fewer choices for audiences. With Roku's hardware and software already installed in a vast number of homes, the proposed deal gives Fox an unusually direct line to viewers at the precise moment when linear television continues to lose ground.