Fox to acquire Roku in $22 billion deal

Fox confirmed on Monday that it is acquiring streaming company Roku in a stock and cash deal valued at around $22 billion. The transaction, which has already been approved by the boards of directors of both companies, is expected to close in the first half of 2027. According to Fox, the combined entity will become the third-largest television business in the United States by viewership. The transaction reflects a broader industry shift toward digital distribution and streaming platforms, combining traditional broadcasting with digital infrastructure.

The acquisition merges Fox’s traditional news and sports channels with Roku’s connected TV (CTV) platform, which refers to the market for streaming ads and subscriptions. This platform includes the software and operating system that powers smart TVs and streaming devices. Through this transaction, Fox gains direct access to Roku’s audience of 100 million households. Fox says this footprint will help the company target advertisements more effectively and rely less on traditional television delivery networks. The deal also unites Roku with Fox’s existing digital streaming assets. These include Tubi, the free ad-supported streaming service that Fox acquired for $440 million in 2020 during a period of intense competition in the live streaming industry, and Fox One, its direct-to-consumer streaming service.

To support the acquisition, Fox has secured substantial debt financing. The financial details of the transaction include:

• Total transaction value: Around $22 billion, to be paid in a combination of stock and cash.
• Acquisition debt: A $12 billion loan obtained by Fox to fund the purchase.

The leadership of both organizations framed the transaction as a pivotal step for their respective streaming strategies. Fox CEO Lachlan Murdoch stated that the combination will expand the company’s reach into high-growth sectors and significantly alter its overall growth trajectory. Anthony Wood, the founder and CEO of Roku, stated: “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.”

Why it matters

The deal merges Fox’s traditional news and sports channels with Roku’s connected TV platform, creating the third-largest television business in the United States. This consolidation reflects the media industry’s broader shift toward streaming as audiences split their time between traditional broadcasts and digital platforms.