Fox Corp. has agreed to acquire Roku Inc., a leading streaming platform, in a deal valued at approximately $22 billion. The transaction, announced on June 15, combines Fox’s traditional media assets—including its news, sports, and broadcast channels—with Roku’s streaming services, which reach over 100 million households globally. The acquisition aims to help Fox transition from its reliance on traditional pay-TV distribution toward a stronger foothold in streaming and digital advertising.
The deal involves a combination of cash and Fox stock, with Roku shareholders receiving $96 per share in cash plus approximately 0.97 Fox Class A shares for each Roku share they hold. This values the offer at $160 per share, representing a premium of nearly 34% over Roku's closing price before news of a potential sale became public. Roku shares closed near $141, while Fox shares fell approximately 11% on the day of the announcement.
Fox Executive Chair and CEO Lachlan Murdoch described the acquisition as a “defining moment,” highlighting the strategic fit of combining Fox’s live content portfolio with Roku’s widely used streaming platform. The move is expected to give Fox greater access to consumer data from Roku’s user base, enhancing its ability to target advertisements and better compete in the evolving media landscape.
Roku, founded in 2002 by British entrepreneur Anthony Wood, operates a platform that carries streaming apps and the free ad-supported Roku Channel, which accounts for about 3% of all television viewing according to Nielsen data. Industry analysts note that Roku generates significant advertising revenue, projected by research firm EMarketer to reach $3.57 billion this year, reflecting 19% growth over the previous year. Fox already owns the ad-supported streaming service Tubi, which it acquired for $440 million in 2020 and which is approaching $1.5 billion in annual revenue.
The acquisition will expand Fox’s digital advertising business substantially, potentially more than doubling its revenue in this segment. However, some analysts caution about the challenges of integrating a digitally native streaming company with a legacy media conglomerate, noting the ongoing consolidation within the streaming industry.
Fox has a history of investments in distribution platforms, including stakes in DirecTV and Sky TV, and its recent strategy has focused more on live sports and news rather than heavily investing in scripted entertainment. The company launched the Fox One direct-to-consumer subscription service for its news and sports content to supplement its presence on traditional pay-TV platforms.
The agreement also includes a commitment to retain Roku as a “partner-friendly” platform that will continue to carry competing programming services alongside Fox’s own content. Some industry observers note this arrangement may require careful management to maintain Roku’s appeal to third-party content providers.
Fox and Roku anticipate approximately $400 million in annual cost savings from the combined operations. This is Fox’s first major acquisition since Lachlan Murdoch solidified control of the company following a family settlement in 2025. The deal is subject to regulatory approval and expected to close later this year.