Fox acquires Roku for $22 billion in bid to dominate streaming as viewers abandon cable

The terms

Fox Corp will pay $160 per share in cash and stock, a premium of 11.4% to Roku's last close, valuing the streaming platform at about $22 billion. The deal, announced on Monday, June 15, is expected to close in the first half of 2027. Fox shareholders will own approximately 73% of the combined entity, with Roku investors holding the remaining 27%. Fox shares dipped 8% in premarket trading, while Roku's stock was halted.

“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.”

Strategic push into streaming

The acquisition gives Fox direct access to more than 100 million Roku streaming households worldwide, providing a massive advertising platform and reducing reliance on traditional cable distribution. Roku's ad revenue hit $613 million in the first quarter, up 27% year-on-year. Fox already operates Tubi, a free ad-supported streaming service, and Roku runs its own channel; executives insisted the two will remain separate but complementary. The combined company aims to become the third-largest player in US television by viewing share.

“Most items on the homescreen are personalized in the sense that we decide what to show a customer based on what they're most likely to watch. Having more properties that generate more revenue will result in overall more revenue being generated by the homescreen.”

Programming and technology

For Fox's content division, led by CEO Rob Wade, the union could boost promotion of shows like The Simpsons, The Masked Singer and Animal Control on Roku's prominent homescreen. The deal also reunites Roku Media President Charlie Collier with Fox; he previously ran entertainment at the network before leaving in 2022, partly because he was not given oversight of Tubi. Fox executives will gain extensive data on viewing habits across its own and licensed programming, aiding ad targeting and content decisions.

Political scrutiny

The tie-up concentrates further media power in the Murdoch family, whose outlets already include Fox News, The Wall Street Journal and News Corp. Lachlan Murdoch assumed sole oversight of Fox last year after a succession battle. Consumer advocates warn about the political implications of aligning a major streaming gateway with a network known for its Trump-friendly stance.

“In the Trump era, these deals have huge political implications that really need to be focused on. Perhaps people will get the message that this is not just a media deal, this is the further political alignment of US media assets into MAGA-friendly hands.”

Advertising and consolidation

The deal arrives as media giants jockey for streaming dominance. Paramount recently won its bid to buy Warner Bros, and analysts forecast $20 billion in US streaming ad spending by 2029. Fox and Roku's combined scale could attract significant advertiser budgets, but history shows mergers often lead to price hikes for consumers. If the two platforms ever merge, a Barron's analysis suggests a subscription increase is likely, similar to Disney's Hulu-Disney+ integration. Analysts at MoffettNathanson noted that a Netflix-Warner tie-up would have eroded theatrical film releases, while the actual outcome leaves a more balanced market. Michael Nathanson said that had Netflix acquired Warner Bros, "the film industry would've been hit harder."