Fox Corp. has reached an agreement to acquire streaming platform and device maker Roku in a transaction valued at approximately $22 billion, marking one of the biggest media deals of the year and further reshaping the television and streaming landscape.
It is the latest instance in which a major media company seeks to adapt to changing viewing habits where audiences are increasingly watching content through streaming services and connected-TV platforms rather than traditional cable bundles. The industry has also seen a fresh wave of consolidation activity in recent months as companies seek greater scale in advertising, distribution and streaming.
Under the terms of the agreement, Fox will acquire Roku for $160 per share in a cash-and-stock transaction. Roku shareholders will receive $96 in cash and 0.9693 shares of Fox Class A common stock for each Roku share, according to company announcements and regulatory details released Monday and reported by CNBC.
Existing Fox shareholders are expected to own roughly 73% of the combined company, while Roku shareholders will hold about 27%. The transaction is expected to close during the first half of 2027, subject to shareholder and regulatory approvals.
Fox said it plans to fund the cash portion of the acquisition through a combination of cash on hand and new debt. The company has secured $12 billion in committed bridge financing for the transaction. The combined company is targeting approximately $400 million in annual cost synergies. The acquisition represents Fox's first major purchase since Lachlan Murdoch consolidated control of the company following the Murdoch family settlement last year, Reuters noted.
Fox Chief Executive Officer Lachlan Murdoch described the transaction as a "defining moment" for the company. The deal brings together Fox's portfolio of live sports and news programming, including the Fox broadcast network and Fox News Channel, with Roku's streaming platform, operating system and connected-TV advertising business.
The acquisition also combines Fox-owned free ad-supported streaming service Tubi with Roku's own free streaming offering, The Roku Channel. The merger will create one of the largest free ad-supported streaming operations in the United States, adding further scale to Fox's advertising business, an Axios report said.
Roku reaches more than 100 million streaming households globally through its devices, smart TV operating system and streaming platform, according to company disclosures cited by The Verge. Roku Chief Executive Officer Anthony Wood said the company will continue operating as an open platform serving a wide range of content providers. Wood is expected to join Fox's board following the completion of the transaction.
The acquisition also adds another chapter to a period of significant change across the media industry. Fox's last major transaction came in 2019, when much of 21st Century Fox's entertainment business was sold to Disney in a deal valued at approximately $71 billion. Since then, Fox has focused heavily on live news and sports programming while building its streaming presence through Tubi and, more recently, the direct-to-consumer service Fox One.
The company's broadcast network is currently carrying matches from the FIFA World Cup, underscoring Fox's emphasis on live programming as advertisers increasingly prioritize sports and major events that continue to draw large audiences in real time.
The Roku acquisition was announced amid a broader period of media consolidation. Just days earlier, the U.S. Department of Justice cleared Paramount Skydance's planned acquisition of Warner Bros. Discovery after an extensive review, according to Reuters, highlighting the continued push by media companies to expand scale and compete across television, streaming and digital advertising markets.
Fox shares fell in premarket trading following the announcement, while Roku shares moved higher as investors assessed the terms of the deal and the implications for the combined company.
