Fox Corporation has reached an agreement to acquire Roku in a transaction valued at approximately $22 billion, marking one of the largest media deals in recent years.
Under the terms of the agreement announced Monday, Roku shareholders will receive $160 per share through a combination of cash and Fox Class A common stock. The acquisition is expected to close during the first half of 2027, pending regulatory approvals and other customary closing conditions.
The deal would bring together Fox’s portfolio of news, sports, and entertainment programming, along with its ad-supported streaming service Tubi, with Roku’s connected television ecosystem. Roku currently reaches more than 100 million streaming households worldwide through its operating platform and advertising business, while also operating The Roku Channel.
Fox executives described the acquisition as a major step in the company’s long-term digital strategy. Speaking during a conference call with analysts, Fox Executive Chair and CEO Lachlan Murdoch said the acquisition “will strengthen and expand our position in the high growth digital video ecosystem and unlocks new ways to serve our audiences and partners.”
Murdoch noted that Fox has increasingly focused on targeted growth initiatives rather than pursuing scale alone.
A key factor behind the acquisition is the growing consumer demand for aggregated viewing experiences. Fox executives argued that viewers increasingly prefer accessing content through centralized platforms, making Roku’s role as a leading connected TV gateway especially valuable.
Once combined, Fox and Roku will become the third-largest television company in the United States based on viewing share. The merged business would span broadcast television, cable networks, local stations, and streaming services, giving it a substantial presence across all major platforms.
Roku founder and CEO Anthony Wood said the company viewed the transaction as an opportunity to accelerate its long-term objectives and further influence the future of television. Wood indicated that Roku conducted a comprehensive strategic review process before selecting Fox as the preferred acquirer.
To finance the transaction, Fox will take on $8 billion in new debt. Following completion of the deal, existing Fox shareholders are expected to own roughly 73% of the combined company, while current Roku shareholders will retain the remaining 27%.
Featured image: Justin Sullivan/Getty Images
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