Fox acquires Roku for $22 billion, creating third-largest US TV player
Fox Corporation announced it will acquire streaming platform Roku for $22 billion, merging its live sports, news, and Tubi service with the device maker reaching more than 100 million households. The deal, if approved, would create the third-largest US television player by viewing share.
Deal terms
Fox Corporation will pay $160 per Roku share in a mix of cash and Fox Class A common stock, valuing the enterprise at roughly $22 billion. The structure works out to $96 in cash plus 0.9693 Fox Class A shares for each Roku share. Fox shareholders will own about 73 percent of the combined company, with Roku holders retaining roughly 27 percent. Morgan Stanley has provided $12 billion in bridge financing, and the companies expect to close in the first half of calendar year 2027, pending regulatory and shareholder approvals.
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.
Why Fox is buying Roku
Roku gives Fox an instant connected-TV advertising business and a front door to more than half of all US broadband homes. The platform is where many viewers land before opening an app, and its advertising and distribution revenue hit $4.1 billion last year, 87.5 percent of its total. By owning that gateway, Fox can push its own live sports and news properties — including the NFL, MLB, FIFA World Cup, and Fox News — alongside its free streamer Tubi and The Roku Channel. The companies say the combination will be one of the largest streaming businesses in the country.
Over the past two decades, we've built Roku into the leading TV streaming platform, reaching more than 100 million households globally and reshaping how people discover and enjoy entertainment.
The larger consolidation wave
The deal arrives days after the US Justice Department cleared Paramount's $110 billion purchase of Warner Bros. Discovery, a signal that regulators are receptive to media consolidation. Fox spent the last decade narrowing its focus to live news and sports, bought Tubi in 2020, and now adds the platform layer that hosts its programming. Roku founder Anthony Wood will stay at the company and join Fox's board of directors.
What comes next
The agreement requires sign-off from both sets of shareholders and from US and some non-US regulators, though Wood and trusts holding most of Roku's voting power have already agreed. Both companies said they are committed to keeping Roku an open, partner-friendly platform and to the ubiquitous distribution of Fox content. On a pro-forma basis, the merged entity would become the third-largest player in US television by share of viewing.
