LOS ANGELES (Diya TV) — Fox Corp. has agreed to acquire Roku in a deal valued at about $22 billion, including debt, as the media company looks to expand its reach in streaming, advertising, and digital subscriptions.
The cash-and-stock transaction marks one of the biggest media deals in recent years. It also highlights the ongoing shift toward streaming as traditional television companies seek new ways to grow.
Under the agreement, Fox will pay $96 in cash and 0.9693 shares of its Class A common stock for each Roku share. The deal values Roku at $160 per share. Fox said it will finance the cash portion through available cash and new debt, including a $12 billion loan.
The companies announced the agreement on Monday. However, the transaction still requires approval from shareholders and regulators. Fox expects the deal to close during the first half of 2027.
Fox CEO Lachlan Murdoch described the acquisition as a major step forward for the company. He said the combination will strengthen Fox’s position in streaming, advertising, and subscription-based services.
“This is a defining moment for Fox,” Murdoch said during a conference call with investors.
The deal brings together Fox’s portfolio of live news and sports content with Roku’s large streaming platform. Roku reaches more than 100 million households worldwide and records about 145 billion hours of annual engagement. As a result, the combined company expects to become the third-largest television player in the United States based on viewing share.
Fox oversees major media properties, including the Fox broadcast network, Fox News, and the free streaming service Tubi. Meanwhile, Roku operates popular streaming devices and The Roku Channel, a free ad-supported streaming service. Importantly, both companies said Roku will continue operating as an open platform. Therefore, viewers should not see immediate changes after the acquisition closes.
Murdoch also confirmed that Fox plans to keep Tubi and The Roku Channel as separate services. He said the platforms complement each other and currently share only limited audience overlap.
In recent years, advertising has become increasingly important for media companies. As streaming competition grows, companies continue searching for new revenue sources. Consequently, Fox sees Roku’s advertising technology and customer data as valuable assets.
The acquisition will also give Fox greater access to subscription revenue and digital advertising opportunities. Furthermore, Roku’s extensive platform business offers additional growth potential. Roku CEO Anthony Wood welcomed the agreement and said it would help accelerate the company’s long-term vision.
“The combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers,” Wood said in prepared remarks.
Wood will remain involved with the company after the transaction closes. In addition, he will join Fox’s board of directors. Roku has played a significant role in the growth of streaming television. Wood previously worked at Netflix during the company’s transition from DVD rentals to online streaming. Roku later spun off from Netflix and launched its first streaming device in 2008.
Since then, Roku has become one of the most recognizable names in connected television. Its platform supports thousands of streaming services and channels. Meanwhile, Fox has steadily expanded its digital presence. In 2020, the company acquired Tubi for $440 million. More recently, it launched Fox One, a direct-to-consumer streaming service.
Murdoch noted that Fox has been an investor in Roku and a longtime business partner. Therefore, the companies already share an established relationship. Fox said it expects about $400 million in annual cost savings from the merger. The company also believes the deal will create additional revenue opportunities over time. After the acquisition closes, existing Fox shareholders will own about 73% of the combined company. Roku shareholders will hold the remaining 27%.
Investors reacted cautiously to the announcement. Fox shares fell about 17% in Monday trading, while Roku shares slipped roughly 2%. Even so, Roku stock remained higher than before reports of a potential sale emerged last week. As media companies continue adapting to changing viewing habits, the Fox-Roku deal signals another major move toward a streaming-focused future.
