Blab Tech
Fox Corp to Acquire Roku in $22 Billion Deal, Expanding Streaming Reach
Fox Corporation announced on Monday that it will acquire Roku, Inc. in a cash‑and‑stock transaction valued at roughly $22 billion in enterprise value, debt included. The deal will bring Roku’s more than 100 million global households, its free ad‑supported channel, and first‑party data into Fox’s portfolio. Together, the companies will become the third‑largest U.S. television player by viewing share.
Under the terms, Fox will pay $96 in cash and 0.9693 shares of its Class A common stock for each Roku Class A and Class B share outstanding, valuing each Roku share at $160. After closing, Fox shareholders are expected to own about 73 percent of the combined entity, while Roku shareholders will hold roughly 27 percent. The transaction is slated to close in the first half of 2027 and requires approval from both sets of shareholders and regulatory authorities.
“Pairing Fox’s live news, sports and entertainment content with a streaming platform that has a large, engaged audience gives us a stronger footing in advertising and subscription revenue streams,” Fox CEO Lachlan Murdoch said during a conference call. “We are confident this is the right transaction, at the right moment, for all the right reasons.”
Roku founder and CEO Anthony Wood echoed that the acquisition will accelerate Fox’s vision and foster more aggressive innovation for viewers, partners and advertisers. Wood said he will retain an ongoing role at the company and will join Fox’s board of directors after the transaction closes.
Founded in 2002, Roku launched its first set‑top box in 2008 and has since become the U.S. market leader in streaming video distribution, reaching nearly half of U.S. broadband households. Its operating system powers a range of devices, from Roku‑branded players to smart TVs and home‑entertainment products. The Roku Channel, a free ad‑supported streaming service, was the fifth‑most‑watched service in the United States as of 2025.
Fox Corporation, born from the 2019 spin‑off of 21st Century Fox’s television, news and sports assets, owns the Fox Broadcasting Company, Fox News, Fox Business, Fox Sports and the free‑ad‑supported streaming service Tubi, acquired in 2020. Its portfolio includes major sports rights such as the NFL and MLB, along with a broad slate of news and entertainment programming.
Industry analysts see the deal as a strategic response to the continuing shift toward online video. With YouTube and Netflix dominating the streaming landscape, the combined Fox‑Roku entity would rank behind them in U.S. viewing time but would have a stronger position in live sports and news—segments that remain highly valuable to advertisers.
The announcement triggered a mixed market reaction. Fox shares fell 12 percent in pre‑market trading, while Roku shares rose slightly, reflecting investor uncertainty about integration and the forthcoming regulatory review.
The transaction also raises questions about competition and data privacy. Fox will gain access to Roku’s first‑party data, potentially enhancing its advertising targeting capabilities. Regulators will likely examine the deal for antitrust concerns, given Fox’s existing media holdings and Roku’s dominant platform position.
If approved, the merger would create a company that combines Fox’s content production and distribution strengths with Roku’s technology platform and user base, positioning it to compete more effectively in a market where streaming services continue to grow and where live sports and news remain key differentiators.
As of now, the deal remains contingent on shareholder and regulatory approvals. Fox and Roku have not yet disclosed a definitive closing date beyond the first half of 2027. Investors and industry observers will watch for regulatory filings and shareholder votes in the coming months.
The acquisition represents Fox’s most significant expansion into the streaming arena since its 2019 spin‑off and could reshape the competitive dynamics of U.S. television, particularly in the live‑sports and news segments.
Under the terms, Fox will pay $96 in cash and 0.9693 shares of its Class A common stock for each Roku Class A and Class B share outstanding, valuing each Roku share at $160. After closing, Fox shareholders are expected to own about 73 percent of the combined entity, while Roku shareholders will hold roughly 27 percent. The transaction is slated to close in the first half of 2027 and requires approval from both sets of shareholders and regulatory authorities.
“Pairing Fox’s live news, sports and entertainment content with a streaming platform that has a large, engaged audience gives us a stronger footing in advertising and subscription revenue streams,” Fox CEO Lachlan Murdoch said during a conference call. “We are confident this is the right transaction, at the right moment, for all the right reasons.”
Roku founder and CEO Anthony Wood echoed that the acquisition will accelerate Fox’s vision and foster more aggressive innovation for viewers, partners and advertisers. Wood said he will retain an ongoing role at the company and will join Fox’s board of directors after the transaction closes.
Founded in 2002, Roku launched its first set‑top box in 2008 and has since become the U.S. market leader in streaming video distribution, reaching nearly half of U.S. broadband households. Its operating system powers a range of devices, from Roku‑branded players to smart TVs and home‑entertainment products. The Roku Channel, a free ad‑supported streaming service, was the fifth‑most‑watched service in the United States as of 2025.
Fox Corporation, born from the 2019 spin‑off of 21st Century Fox’s television, news and sports assets, owns the Fox Broadcasting Company, Fox News, Fox Business, Fox Sports and the free‑ad‑supported streaming service Tubi, acquired in 2020. Its portfolio includes major sports rights such as the NFL and MLB, along with a broad slate of news and entertainment programming.
Industry analysts see the deal as a strategic response to the continuing shift toward online video. With YouTube and Netflix dominating the streaming landscape, the combined Fox‑Roku entity would rank behind them in U.S. viewing time but would have a stronger position in live sports and news—segments that remain highly valuable to advertisers.
The announcement triggered a mixed market reaction. Fox shares fell 12 percent in pre‑market trading, while Roku shares rose slightly, reflecting investor uncertainty about integration and the forthcoming regulatory review.
The transaction also raises questions about competition and data privacy. Fox will gain access to Roku’s first‑party data, potentially enhancing its advertising targeting capabilities. Regulators will likely examine the deal for antitrust concerns, given Fox’s existing media holdings and Roku’s dominant platform position.
If approved, the merger would create a company that combines Fox’s content production and distribution strengths with Roku’s technology platform and user base, positioning it to compete more effectively in a market where streaming services continue to grow and where live sports and news remain key differentiators.
As of now, the deal remains contingent on shareholder and regulatory approvals. Fox and Roku have not yet disclosed a definitive closing date beyond the first half of 2027. Investors and industry observers will watch for regulatory filings and shareholder votes in the coming months.
The acquisition represents Fox’s most significant expansion into the streaming arena since its 2019 spin‑off and could reshape the competitive dynamics of U.S. television, particularly in the live‑sports and news segments.
