Fox to buy Roku for $22 billion in streaming push

Fox Corp. agreed to acquire Roku for $22 billion, merging live sports and news content with the largest U.S. streaming-TV platform.

Fox Corp. agreed to acquire Roku for about $22 billion, combining the broadcaster's live sports and news content with the leading connected-TV platform in a bet on streaming's continued dominance over traditional television.

"This is a defining moment for Fox, and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade," Lachlan Murdoch, executive chair and chief executive officer of Fox, said in a statement.

Fox will pay $160 per share in a mix of cash and Fox Class A common stock, the companies said Monday. The deal values Roku at roughly $22 billion in enterprise value and is expected to close in the first half of 2027. On a pro-forma basis, the combined entity will become the third-largest player in U.S. television by share of viewing, trailing only Google's YouTube and Netflix.

The acquisition marks Fox's biggest bet yet on streaming after its 2020 purchase of Tubi, which Murdoch said has become "one of the most successful businesses in streaming." By adding Roku's platform — which reaches more than 100 million global streaming households — Fox gains direct access to first-party viewer data and a distribution channel that spans broadcast, cable, local and streaming environments.

A Bet on Platform Over Content

The deal structure reflects Fox's strategy of owning the pipe as well as the programming. Roku's operating system powers millions of smart TVs, giving Fox a direct relationship with consumers that traditional broadcasters have long lacked. Fox said it is committed to operating Roku as an "open, partner-friendly platform" and to the continued ubiquitous distribution of its content — a signal to streaming rivals that the platform will not become a Fox-only walled garden.

Anthony Wood, founder, chairman and chief executive officer of Roku, said the combination offers "an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners, and advertisers." Roku's board unanimously approved the sale after a strategic review, he said.

Reshaping the Streaming Landscape

The $22 billion price tag represents a significant premium for Roku shareholders, who will also receive stock in the combined company, allowing them to participate in future upside. Fox said it will maintain its investment-grade balance sheet and continue its share buyback and dividend programs.

The deal comes as the streaming industry consolidates around scale. Netflix commands more than 300 million global subscribers, while Disney's streaming business is nearing profitability after years of investment. Fox's combination with Roku creates a third force — one that blends live sports and news, which remain the most valuable content categories for advertisers, with a platform that reaches viewers in their living rooms.

Fox's previous acquisition of Tubi in 2020 for $440 million proved prescient as the free ad-supported streaming market expanded. Tubi now generates more than $1 billion in annual revenue, according to Fox's most recent filings. The Roku deal represents a roughly 50-times larger bet on the same thesis: that advertising-supported streaming will capture an increasing share of the $70 billion U.S. TV advertising market.

Fox expects the transaction to close in the first half of 2027, subject to regulatory approvals and Roku shareholder votes. The companies did not disclose which banks advised on the deal.

This article is for informational purposes only and does not constitute investment advice.