Fox Corporation has announced a landmark agreement to acquire streaming platform Roku in a cash-and-stock transaction valued at approximately $22 billion, marking one of the biggest media deals in recent years as traditional broadcasters race to strengthen their position in the rapidly expanding streaming market.
Under the terms of the agreement, Fox will acquire Roku for $160 per share, representing an 11.4% premium over Roku’s most recent closing stock price. Following the announcement, Fox shares fell by around 8% in premarket trading, while trading in Roku shares was temporarily halted.
The acquisition is expected to significantly transform Fox’s digital strategy by providing direct access to Roku’s vast streaming ecosystem, which reaches more than 100 million households worldwide. The deal is designed to help Fox expand its advertising capabilities, improve audience targeting, and reduce its dependence on traditional cable and satellite television distribution.
As consumers increasingly move away from conventional television services toward streaming platforms, media companies are under pressure to secure stronger digital distribution channels and advertising networks. Fox believes combining its extensive portfolio of sports, news, and entertainment content with Roku’s streaming platform will create a more competitive media powerhouse.
Roku has long been regarded as one of the pioneers of connected television. The company helped popularize streaming on television screens by providing easy access to services such as Netflix and YouTube through dedicated streaming devices and smart TV software. Over the years, Roku has built a substantial advertising business, generating significant revenue from ads displayed across its platform and streaming services.
In the first quarter alone, Roku reported advertising revenue of $613 million, representing a 27% increase compared to the same period a year earlier. Advertising remains the company’s largest source of income, making Roku particularly attractive to media companies seeking greater control over digital ad markets.
The merger would also bring together two growing free streaming platforms. Fox currently owns Tubi, one of the leading free ad-supported streaming television (FAST) services, while Roku operates The Roku Channel. Industry analysts believe combining these services could create one of the largest free streaming destinations in the United States.
Analysts at JP Morgan noted that a merged Tubi and Roku Channel operation could emerge as a dominant force in streaming, capturing a meaningful share of total television viewing and advertising spending.
The announcement follows reports that Roku had been evaluating strategic alternatives, including a possible sale of the company, amid growing interest from businesses seeking access to its large audience base and advertising technology platform.
According to the companies, the combined organization would become the third-largest television company in the United States based on audience viewing share, strengthening its ability to compete against major streaming and media giants.
The transaction is expected to close during the first half of 2027, subject to regulatory approvals and shareholder consent.
Upon completion of the deal, existing Fox shareholders are expected to own approximately 73% of the combined company, while current Roku shareholders will hold the remaining 27%.
The acquisition signals Fox’s most aggressive move yet into the streaming sector and reflects the ongoing transformation of the media industry as companies seek larger audiences, stronger advertising capabilities, and direct relationships with viewers in an increasingly digital entertainment landscape.
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