Fox to acquire Roku in $22 billion deal

Fox confirmed Monday that it is acquiring streaming company Roku in a stock and cash deal valued at around $22 billion. Fox said the deal would create a media and technology company positioned around two trends reshaping video consumption: the continued appeal of live sports and news, and the growth of streaming.

Fox says the deal will create the third-largest television company in the United States. The transaction combines Fox’s news and sports channels, along with its free ad-supported streaming service Tubi, with Roku’s connected TV platform.

The combination will allow for significant audience reach across linear and streaming, Fox says.

The deal gives Fox access to Roku’s audience of 100 million households, helping the company target ads more effectively and rely less on traditional delivery. Fox says the acquisition will give it a “wider entry” into the high growth segment of connected TV, particularly ads and streaming subscriptions.

Fox CEO Lachlan Murdoch called the acquisition a “defining” moment for the company.

“This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile,” Lachlan said in a press release. “Roku pioneered streaming TV and scaled it into a leading CTV platform. Together, we intend to lead its next chapter.”

Fox acquired Tubi for $440 million in 2020 at the height of competition across the live streaming industry. Last year, the company launched Fox One, its direct-to-consumer streaming service.

“I’m incredibly proud of what our team has built, and the combination with Fox is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers,” said Roku founder and CEO Anthony Wood. “I couldn’t be more excited about what we’ll accomplish together.”

The deal has been approved by the boards of directors of both companies and is expected to close in the first half of 2027. Fox says it obtained a $12 billion loan for the acquisition.