Fox Corporation to buy Roku in $22 billion deal

Source Credit : Portfolio Prints

Fox Corp is acquiring Roku in a cash-and-stock deal valued at approximately $22 billion, a major strategic move aimed at strengthening its position in the rapidly evolving streaming landscape as audiences continue shifting away from traditional television.

Announced on Monday, the acquisition will give Fox direct access to Roku's massive footprint of more than 100 million streaming households, enabling the media company to expand its digital advertising capabilities, deliver more targeted ads, and reduce its dependence on conventional cable and satellite distribution channels.

Under the terms of the agreement, Fox will acquire Roku for $160 per share, representing an 11.4% premium over Roku's previous closing price.

Following the announcement, Fox shares fell 8% in premarket trading, while Roku shares were temporarily halted.

Roku was one of the pioneering companies that helped bring streaming services such as Netflix and YouTube to televisions through its connected devices and smart TV operating system, transforming how millions of consumers access digital entertainment.

The company's business is heavily driven by advertising and subscription revenue generated through streaming applications on its platform. Advertising remains its largest revenue source, generating $613 million during the first quarter, a 27% increase compared with the same period a year earlier.

Fox already owns the free streaming platform Tubi, while Roku operates The Roku Channel. Analysts at JP Morgan said that combining the two businesses could create a dominant streaming ecosystem with a significant share of total television viewing in the United States.

The announcement follows reports from Reuters on Friday that Roku had been exploring strategic alternatives, including a potential sale, amid growing interest from companies seeking access to its extensive streaming audience and advertising infrastructure.

According to the companies, the combined entity will become the third-largest player in the U.S. television market by total viewing share.

The transaction is expected to close during the first half of 2027, subject to regulatory approvals and customary closing conditions.

Once the deal is completed, existing Fox shareholders are expected to own approximately 73% of the combined company, while Roku shareholders will hold the remaining 27%.