Fox Corp. made a bold move Monday, announcing it will purchase streaming platform Roku for $22 billion, a deal that reshapes the media landscape by combining Fox's live news and sports with Roku's massive user base. The transaction values each Roku share at $160, comprising $96 in cash and 0.9693 shares of Fox Class A common stock.
Under the terms, Fox gains control of Roku's own channel, its first-party data, and a direct connection to over 100 million households. Roku will continue to operate as an open platform, according to the company's release. The merger positions the combined entity as the third-largest player in U.S. television by viewing share, challenging legacy networks and streaming rivals alike.
Lachlan Murdoch, Fox's CEO and son of media mogul Rupert Murdoch, hailed the acquisition as a 'defining moment' for the company. 'In 2019, we reoriented the company around live news and sports,' Murdoch said. 'In 2020, we acquired Tubi and under our stewardship it has become one of the most successful businesses in streaming. Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it.'
The deal marks a strategic pivot for Fox, which has focused on live programming since selling most of its entertainment assets to Disney in 2019. Roku, founded by Anthony Wood in 2002, is best known for its streaming devices and smart TVs, but its ad business and distribution of third-party services have made it a key player in the streaming ecosystem.
Wood, who will remain with the company and join Fox's board after the transaction closes, called the deal 'an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively.' He added, 'Our Board of Directors unanimously determined after concluding its strategic review process that this transaction offers a significant premium to Roku shareholders while also providing them with the opportunity to participate in the compelling future upside of the combined company.'
The boards of both companies unanimously approved the deal, which is expected to generate roughly $400 million in cost savings. Existing Fox shareholders will own about 73% of the combined company, with Roku shareholders holding the remaining 27%. The acquisition is slated to close in the first half of 2027, pending approval from Trump administration regulators.
The move comes amid a broader consolidation wave in media, as companies scramble to compete with tech giants like Netflix and Amazon. Meanwhile, a bipartisan House panel recently criticized the NFL for rising streaming costs, highlighting the tension between traditional sports leagues and digital platforms. Fox's bet on Roku underscores its confidence in the streaming model, even as regulators and lawmakers scrutinize media mergers.
Murdoch, who took the helm from his father in 2023 and fended off a family challenge to his control last year, is betting big on this integration. The deal also comes as the House GOP pushes a $70 billion border bill, with hardliners nearly derailing the vote—a reminder of the political turbulence that could affect regulatory reviews. For now, Fox and Roku are moving ahead, aiming to reshape how America watches television.
