Fox Acquires Roku for $22 Billion, Creating Third-Largest US TV Player

Fox Corporation announced on Monday its acquisition of Roku for $22 billion, or $160 per share, in a deal that combines the media giant's sports, news, and entertainment content with the leading streaming platform reaching approximately 100 million users. The companies project the merger will create the third-largest player in US television by share of viewing.

Under the terms, Roku shareholders will receive $96 in cash and the remainder in Fox Class A common stock per share. Upon closing, current Fox shareholders will own roughly 73% of the combined entity, with Roku shareholders holding about 27%. The deal is expected to close in the first half of 2027, with the companies forecasting $400 million in operational savings.

Fox's Streaming Ambitions and Competitive Pressure

Fox has gradually built its streaming presence, launching the Fox One service in August 2025 and operating the free ad-supported platform Tubi. However, the company lacked a distribution platform to compete against YouTube, Netflix, Amazon, Disney+, HBO Max, Paramount+, and Peacock. The acquisition became more urgent after CNN parent Warner Bros. Discovery received initial US regulatory approval to combine with Paramount, reshaping the competitive landscape.

Fox CEO Lachlan Murdoch framed the deal as the next step in a decade-long strategy. "This is a defining moment for Fox, and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade," Murdoch said in a statement. He added that Roku will remain open to competing apps after the deal closes, describing it as an "open and partner-friendly business."

What the Deal Means for Users and the Industry

The combined entity will control both the content pipeline and the primary distribution channel for that content across millions of living rooms. Roku users may see closer integration with Fox's live sports and news programming, but the companies insist the platform's openness to third-party apps will not change.

• The purchase price of $22 billion makes it Fox's largest acquisition ever.
• Roku's platform reaches roughly 100 million monthly active users in the US.
• The deal values Roku at $160 per share, a premium over its previous trading price.
• Fox expects $400 million in annual cost synergies after the merger closes.
• The transaction has received initial regulatory approval but still faces full review.

Critics have noted that the projected $400 million in savings likely implies significant layoffs, particularly in overlapping corporate functions and possibly in Roku's hardware and home automation divisions. One analyst pointed out that Roku's smart home products, which were rebranded Wyze devices, could be discontinued after the merger.

The $22 billion deal is expected to close by mid-2027. Fox and Roku will operate separately until then, with integration planning beginning immediately. The combined company will face scrutiny from regulators and competitors as it seeks to carve out a larger share of the streaming market.