Fox Corp. Agrees to Acquire Streaming Platform Roku for $22 Billion
The cash-and-stock deal aims to combine Fox's content with Roku's viewership to become a major player in the U.S. television market.
Fox Corp. has announced an agreement to purchase the streaming pioneer Roku in a cash-and-stock transaction valued at approximately $22 billion, including debt.
The combined company is expected to become the third-largest entity in U.S. television based on viewing share, according to the companies. Roku will continue to operate as an open and partner-friendly platform, with no immediate changes anticipated for customers.
This acquisition grants Fox access to Roku's more than 100 million global households, its proprietary channel, and its first-party data. Fox, which owns a substantial portfolio of sports, news, and entertainment networks, also operates the streaming service Tubi, acquired in 2020.
Roku founder Anthony Wood, who previously worked with Netflix during its early streaming endeavors, will retain an ongoing role and join the Fox board of directors following the transaction's closure. Wood stated that the combination with Fox presents an opportunity to accelerate Roku's vision and scale more rapidly.
Fox Corp. CEO Lachlan Murdoch highlighted the strategic advantages of integrating Fox's live news and sports content with Roku's significant viewership. He noted that the merger will enhance Fox's exposure to advertising and streaming subscription revenue, positioning the combined entity for future growth in the video landscape.
Analysts suggest that advertising revenue is a key driver for the deal. "The bigger play here is advertising revenue, something all the major streamers are now jockeying for," said Mike Proulx, research director at Forrester. "This deal accelerates Fox into that shift with built-in audience scale. With 2026 shaping up as a defining year of streaming consolidation, the market shift is that streaming is no longer just about quality content slates. It’s about controlling the full stack. If this deal closes, Fox will control more of what viewers watch, how they discover it, and how it gets monetized."
Under the terms of the agreement, 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. The transaction values Roku at $160 per share.
Upon completion, existing Fox shareholders are expected to hold approximately 73% of the combined company, with Roku shareholders owning about 27%. The deal is anticipated to close in the first half of next year, subject to approval from Fox and Roku shareholders, as well as regulatory clearance.
Following the announcement, Fox's shares declined by 15% on Monday, while Roku's shares dropped nearly 2%.