Fox to acquire Roku in $22 billion deal, creating third-largest TV company in US

Fox Corporation announced Monday it will acquire Roku in a $22 billion stock and cash deal, buying access to the streaming platform's 100 million household user base. The transaction is expected to close in the first half of 2027.

Under the deal structure, Fox will pay $160 per Roku share, with $96 in cash and the remainder in Fox stock. The combined entity will become the third-largest television company in the United States, according to Fox.

Fox gains a direct pipeline to cord-cutters

Roku's operating system is embedded in millions of smart TVs and streaming sticks, giving Fox a direct advertising and subscription relationship with consumers who have abandoned traditional cable. Fox already operates the free ad-supported streaming service Tubi, which it bought for $440 million in 2020. Last year, the company launched Fox One, its direct-to-consumer streaming service.

The acquisition gives Fox a wider entry into the connected TV segment, particularly for advertising and streaming subscriptions. Fox CEO Lachlan Murdoch called the acquisition a "defining" moment for the company, saying in a press release: "This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile."

• Roku's platform reaches 100 million households worldwide
• Fox secures a $12 billion loan to help fund the cash portion of the deal
• Both companies' boards have approved the transaction
• Roku founder and CEO Anthony Wood said he is "incredibly proud" of what the team built and excited about the combination
• Fox's news and sports channels, along with Tubi, will combine with Roku's connected TV platform

Financing and regulatory outlook

Fox secured a $12 billion loan to help fund the cash portion of the acquisition, the company confirmed. The deal requires approval from regulators, and both companies expect the review process to extend into 2027. Wood will remain with the combined company, though his exact role has not been specified.

Industry analysts noted that the deal positions Fox to compete more aggressively with streaming giants like Netflix and Disney by controlling the distribution layer. Roku's operating system gives Fox data on viewing habits that can improve ad targeting and reduce the company's reliance on traditional cable carriage fees. Fox said the acquisition will allow for significant audience reach across linear and streaming. The transaction is expected to close in the first half of 2027.