Fox Corporation has reached an agreement to acquire streaming platform Roku in a cash-and-stock transaction valued at approximately $22 billion, a move that would significantly expand the media company’s reach as television audiences continue shifting toward streaming services.
The companies announced on Monday that the deal would combine Fox’s portfolio of live news, sports and entertainment programming with Roku’s streaming platform, which reaches more than 100 million households worldwide.
Under the agreement, Roku shareholders will receive $96 in cash and approximately 0.97 shares of Fox Class A stock for each Roku share they own. The offer values Roku at $160 per share. After the transaction closes, Fox shareholders are expected to own about 73% of the combined company, while Roku investors will hold the remaining stake.
Fox said Roku will continue operating as an open platform and that customers are not expected to see immediate changes. The combined company would become the third-largest television company in the United States by viewing share.
Fox Executive Chair and Chief Executive Officer Lachlan K. Murdoch described the acquisition as a major step in the company’s long-term strategy.
“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. In 2019, we reoriented the company around live news and sports. In 2020, we acquired Tubi and under our stewardship it has become one of the most successful businesses in streaming,” Murdoch said, Fox 4 reported.
“Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it.”
The acquisition would give Fox access to Roku’s streaming platform, advertising business, first-party data and the Roku Channel. Analysts said the combination could strengthen Fox’s ability to target advertising and expand its digital distribution capabilities as traditional cable television continues to face pressure from cord-cutting.
Roku founder and Chief Executive Officer Anthony Wood is expected to remain involved with the combined company and will join Fox’s board of directors. Wood and affiliated entities that control a majority of Roku’s voting power have agreed to support the transaction.
Fox’s purchase of Roku marks the company’s largest acquisition since it bought the streaming service Tubi in 2020. Fox also operates the Fox One subscription streaming service launched last year.
The boards of both companies unanimously approved the transaction. The companies said they expect the deal to close during the first half of 2027, subject to shareholder approval and regulatory review.
The transaction is expected to generate approximately $400 million in annual cost savings. The company plans to fund the cash portion of the deal through a combination of new debt and cash on hand, supported by $12 billion in committed bridge financing.
The agreement comes amid continued consolidation across the media industry as companies seek greater scale in streaming, advertising and content distribution.
