Fox Corp. announced Monday that it is acquiring streaming pioneer Roku in a cash-and-stock deal valued at $22 billion, positioning the company as a stronger force in an increasingly competitive streaming market.
The acquisition brings together Fox’s massive sports, news and entertainment networks as well as its free Tubi streaming service with Roku’s platform, expanding Fox’s reach by 100 million households worldwide.
Fox has explored streaming in recent years, including the launch of its Fox One platform last year, but has failed to keep pace with streaming giants such as Netflix, YouTube, Amazon, Disney, HBO and Peacock.
Combining Fox with Roku will create the third-largest player in U.S. television by share of viewing, the companies said. YouTube is currently the top-viewed streaming platform, followed by Netflix, according to Nielsen’s metrics.
In addition to expanding reach, the merger could help Fox improve target advertising, compete more directly with streaming rivals and reduce its dependence on traditional cable distribution.
“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,” said Fox CEO Lachlan Murdoch. “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.”
Roku will continue to operate as an open, partner-friendly platform that carries competitors’ apps, Murdoch said, and customers will see no immediate changes.
Fox will pay $96 in cash and 0.9693 shares of its Class A common stock for each outstanding Roku Class A and Class B share, valuing the transaction at $160 per Roku share.
Existing Fox shareholders are expected to own approximately 73% of the combined company, while Roku shareholders will own roughly 27% after the deal closes.
“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 CEO Anthony Wood. “I couldn’t be more excited about what we’ll accomplish together.”
The transaction has been unanimously approved by the boards of both companies and is expected to close during the first half of 2027, generating roughly $400 million in annual cost savings.