Fox Strikes $22 Billion Deal for Streaming Giant Roku

Fox Corporation announced an agreement to acquire streaming pioneer Roku, Inc. in a cash-and-stock transaction valued at approximately $22 billion, one of the largest media acquisitions in recent years. The proposed merger would combine Fox’s portfolio of live sports, news and entertainment programming with Roku’s connected television platform, operating system, advertising network and streaming infrastructure. The transaction values Roku at $160 per share and represents a significant premium over the company’s market value before reports of a potential acquisition emerged. The deal reflects Fox’s determination to expand beyond traditional television and establish a stronger position in the rapidly growing streaming marketplace.

Under the terms of the agreement, Roku shareholders will receive $96 in cash and 0.9693 shares of Fox Class A common stock for each outstanding Roku share. The transaction values Roku at approximately $160 per share, representing a premium of roughly 33.7% compared with Roku’s closing price before reports of negotiations surfaced. The structure allows Roku investors to receive both immediate cash compensation and continued participation in the future growth of the combined company. The premium reflects Fox’s belief that Roku’s platform and advertising technology will become increasingly valuable as television consumption continues shifting toward streaming.

Fox plans to fund the cash portion of the transaction through a combination of existing cash reserves and newly issued debt. The company has secured approximately $12 billion in committed bridge financing from Morgan Stanley to support the acquisition. Following completion of the transaction, Fox shareholders are expected to own approximately 73% of the combined company, while existing Roku shareholders will hold the remaining 27%. The financing structure allows Fox to complete one of the largest acquisitions in its history while preserving flexibility for future investments in technology, content and advertising operations.

The acquisition gives Fox immediate access to Roku’s massive streaming ecosystem, which reaches more than 100 million households worldwide. Roku’s operating system powers a significant share of connected televisions and streaming devices, providing Fox with direct access to viewers, valuable audience data and advertising opportunities. The acquisition significantly accelerates Fox’s transition away from reliance on traditional cable television revenue. By owning both premium content and a major distribution platform, Fox gains greater control over how viewers discover and consume television programming across streaming devices.

Combined with Fox’s existing streaming assets, including the free ad-supported platform Tubi, the acquisition creates one of the most influential players in American television. Industry analysts estimate the combined company would become the third-largest television platform in the United States by share of viewing. The addition of The Roku Channel and Roku’s advertising technology strengthens Fox’s ability to compete with larger technology and streaming rivals. The deal also provides Fox with expanded opportunities to monetize live sports, news programming and entertainment content through targeted advertising and integrated digital experiences.

Roku founder, chairman and chief executive officer Anthony Wood will remain actively involved in the business and will join the Fox Corporation Board of Directors after the transaction closes. Wood framed the merger as an opportunity to accelerate Roku’s long-term ambitions. «Over the past two decades, we’ve built Roku into the leading TV streaming platform, reaching more than 100 million households globally and reshaping how people discover and enjoy entertainment. 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.»

Fox Executive Chair and CEO Lachlan K. Murdoch described the acquisition as transformational for the company’s future. «This is a defining moment for Fox. By pairing the most valuable live content portfolio in the industry with a leading TV streaming platform, we are creating a scaled next-generation media and technology company. This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile.» His comments underscored Fox’s belief that the future of television depends on controlling both content and distribution.

One of the biggest questions surrounding the transaction involves Roku’s relationship with rival streaming services. Companies such as Netflix, Disney+, Prime Video and Max rely heavily on Roku’s platform to reach consumers. To address concerns from partners and regulators, Fox has committed to maintaining Roku as an open platform rather than restricting access to competing services. Nevertheless, the company is expected to use Roku’s home screen, recommendation tools and Sports Zone features to promote Fox content and major live events more aggressively.

The transaction has already received unanimous approval from the boards of directors of both companies. Roku’s shareholder approval also appears largely secured because Anthony Wood controls a majority of the company’s voting power and has entered into a support agreement backing the deal. As a result, the most significant remaining hurdles involve Fox shareholder approval and regulatory review by antitrust authorities. Regulators are expected to closely examine the impact the merger could have on competition within the connected television and digital advertising industries.

The acquisition is expected to face detailed review from antitrust regulators because it combines a major content producer with one of the world’s largest television distribution platforms. Regulators will likely examine whether Fox could use Roku’s operating system and recommendation tools to favor its own content over competitors. The company has argued that maintaining Roku as an open ecosystem is essential to preserving relationships with streaming partners and maximizing advertising revenue. The review process is expected to continue through much of 2026 before a final decision is reached.

Fox and Roku expect the transaction to close during the first half of 2027, assuming shareholder and regulatory approvals are obtained. If completed, the acquisition will mark one of the most significant media deals of the streaming era and dramatically reshape the competitive landscape. The merger would provide Fox with direct access to more than 100 million streaming households while giving Roku additional financial resources and content partnerships. As traditional television companies race to adapt to changing viewing habits, the deal represents a major bet that the future belongs to companies controlling both premium programming and the technology platforms that deliver it.