Fox strikes $22B deal to acquire streaming giant Roku
What's the story
Media giant Fox has announced its acquisition of streaming company Roku in a deal worth $22 billion. The transaction, which is a combination of cash and stock, values each Roku share at $160. This merger will create the third-largest player in US TV by share of viewing. The deal was approved by the boards of directors of both companies and is expected to close in the first half of 2027.
Strategic move
Fox CEO calls acquisition 'defining moment for Fox'
Fox CEO Lachlan Murdoch described the acquisition as a "defining moment for Fox" and a natural extension of their strategic plan. He said, "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." Roku is the leading streaming platform for smart TVs in the US, with over 100 million households globally using its service.
Enhanced capabilities
Acquisition strengthens Fox's position in connected TV market
The merger will give Fox direct access to Roku's audience of 100 million households, helping it target ads more effectively and reducing reliance on traditional delivery. The acquisition also strengthens Fox's position in connected TV (CTV), a fast-growing market for streaming ads and subscriptions. Under the takeover, Roku's streaming service will combine with Fox's own Tubi service, creating a major contender against Netflix and Amazon in the US market.
Market trends
Roku founder expresses excitement about merger
The acquisition comes as traditional broadcasters race to build scale in streaming. Fox had previously acquired Tubi for $440 million in 2020 amid fierce competition in the live streaming industry. Roku founder and CEO Anthony Wood expressed his excitement about the merger, saying it is an extraordinary opportunity to accelerate our vision, scale faster, and innovate more aggressively for viewers, partners, and advertisers.