Key facts
- Fox Corporation is acquiring Roku Inc. for approximately $22 billion in a cash-and-stock deal.
- The acquisition aims to expand Fox's reach into smart TVs and advertising by integrating Roku's platform, OS, and hardware.
- Roku's platform is used by 100 million households.
- The combined company is projected to become the third-largest player in U.S. television viewership.
- Fox plans to reduce combined expenses by $400 million and take on $8 million in debt.
- The deal is expected to close in the first half of 2027, pending regulatory and shareholder approvals.
Fox Corporation has agreed to acquire Roku Inc. for approximately $22 billion in a cash-and-stock deal, a move designed to significantly bolster its streaming ambitions and transform the company into a distributor as well as a content provider. The transaction, led by Fox CEO Lachlan Murdoch, echoes earlier strategic pursuits by his father, Rupert Murdoch, to create a comprehensive on-screen map for digital television.
Upon closing, the acquisition will give Fox control over the interface used by approximately 100 million households for streaming. This integration is expected to allow Fox to promote its own services, such as the free ad-supported streaming television (FAST) platform Tubi and the paid streamer Fox One, while also enabling it to sell subscriptions to competitors' services and generate advertising revenue across the platform. Roku's operating system and advertising business are considered the most valuable parts of its operations, with the advertising and subscriptions business posting a gross profit of $584.1 million in the quarter ending March 31, 2026.
The combined company, on a pro forma basis, is projected to become the third-largest player in U.S. television by share of viewing, according to the announcement. Fox aims to leverage Roku's platform for ad sales and user tracking, expanding beyond its legacy business into streaming and increasing its appeal to advertisers seeking large audiences and improved digital targeting.
The deal faces closing conditions, including regulatory approval and approval from both Fox and Roku shareholders, with an expected closing in the first half of 2027. The companies anticipate reducing combined expenses by $400 million, with Fox taking on $8 million in debt for the acquisition. Roku CEO Anthony Wood is slated to join Fox's board of directors.