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Fox Corp to Acquire Roku in $22 B Cash-and-Stock Deal
Fox Corporation announced Monday that it will purchase Roku, Inc. in a cash‑and‑stock transaction worth roughly $22 billion, debt included. The deal will give Fox direct access to more than 100 million households worldwide, the free, ad‑supported Roku channel, and a wealth of first‑party data.
Fox’s portfolio already features a major sports, news and entertainment network, as well as the streaming service Tubi, which it acquired in 2020.
The announcement followed Friday media reports that Roku was weighing its strategic options, including a potential sale. Analysts noted that several large media firms—Netflix, Amazon, Comcast and Disney—had been mentioned as possible buyers.
Fox’s proposal offers $96 in cash and 0.9693 shares of its Class A common stock for each Roku share, valuing the company at $160 per share.
Roku’s founder, Anthony Wood, has long been a key figure in the streaming industry. He began his career at Netflix in the early 2000s, spun off Roku, and launched its first set‑top box in 2008. Wood has said that his motivation for creating the platform was a desire to record and play his favorite show, “Star Trek.” According to the company’s statement, Wood will retain an ongoing role and will join Fox’s board of directors after the transaction closes.
Both companies confirmed that Roku will continue to operate as an open, partner‑friendly platform. The merger is expected to make the combined entity the third‑largest player in U.S. television by share of viewing.
Fox CEO Lachlan Murdoch said the combination would bring together Fox’s live news and sports content with a streaming platform that has a large viewership, and would provide greater exposure to advertising and streaming subscriptions. Murdoch added during a conference call that the combined company would be better positioned for the next decade of video than either company could be alone. He stated, “We are confident this is the right transaction, at the right moment, for all the right reasons.”
Wood, in prepared remarks, said, “The combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers.”
The deal will give Fox access to Roku’s user data and the Roku channel, which serves as a free, ad‑supported streaming service. It also expands Fox’s reach into households that may not yet own a Fox‑branded smart TV or set‑top box. Fox’s existing shareholders are expected to own about 73 % of the combined company, while Roku shareholders will own roughly 27 %.
The transaction is subject to approval by both companies’ shareholders and regulatory authorities and is expected to close in the first half of next year. Until then, Fox’s stock fell before the market opened, while Roku’s shares rose slightly.
The acquisition reflects a broader trend of consolidation in the media and streaming sectors, as traditional broadcasters look to strengthen their digital footprints. Fox’s move follows its earlier purchase of Tubi and its continued investment in sports and news programming. The deal also positions Fox to compete more directly with other streaming platforms that have deep data analytics capabilities.
As the industry watches the outcome of the regulatory review, stakeholders will be keen to see how the combined company leverages its expanded audience and data assets. The merger could influence advertising rates, content licensing agreements and the competitive dynamics of U.S. television viewership.
The next steps will include shareholder votes, regulatory filings and the integration of Roku’s technology and data infrastructure into Fox’s operations. Investors will likely monitor the company’s earnings reports for the first quarter after the merger to assess the financial impact of the transaction.
In summary, Fox’s acquisition of Roku represents a significant consolidation in the U.S. media landscape, combining Fox’s broadcast strengths with Roku’s streaming reach and data capabilities. The deal, pending approvals, could reshape how audiences access news, sports and entertainment content in the coming years.
Fox’s portfolio already features a major sports, news and entertainment network, as well as the streaming service Tubi, which it acquired in 2020.
The announcement followed Friday media reports that Roku was weighing its strategic options, including a potential sale. Analysts noted that several large media firms—Netflix, Amazon, Comcast and Disney—had been mentioned as possible buyers.
Fox’s proposal offers $96 in cash and 0.9693 shares of its Class A common stock for each Roku share, valuing the company at $160 per share.
Roku’s founder, Anthony Wood, has long been a key figure in the streaming industry. He began his career at Netflix in the early 2000s, spun off Roku, and launched its first set‑top box in 2008. Wood has said that his motivation for creating the platform was a desire to record and play his favorite show, “Star Trek.” According to the company’s statement, Wood will retain an ongoing role and will join Fox’s board of directors after the transaction closes.
Both companies confirmed that Roku will continue to operate as an open, partner‑friendly platform. The merger is expected to make the combined entity the third‑largest player in U.S. television by share of viewing.
Fox CEO Lachlan Murdoch said the combination would bring together Fox’s live news and sports content with a streaming platform that has a large viewership, and would provide greater exposure to advertising and streaming subscriptions. Murdoch added during a conference call that the combined company would be better positioned for the next decade of video than either company could be alone. He stated, “We are confident this is the right transaction, at the right moment, for all the right reasons.”
Wood, in prepared remarks, said, “The combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers.”
The deal will give Fox access to Roku’s user data and the Roku channel, which serves as a free, ad‑supported streaming service. It also expands Fox’s reach into households that may not yet own a Fox‑branded smart TV or set‑top box. Fox’s existing shareholders are expected to own about 73 % of the combined company, while Roku shareholders will own roughly 27 %.
The transaction is subject to approval by both companies’ shareholders and regulatory authorities and is expected to close in the first half of next year. Until then, Fox’s stock fell before the market opened, while Roku’s shares rose slightly.
The acquisition reflects a broader trend of consolidation in the media and streaming sectors, as traditional broadcasters look to strengthen their digital footprints. Fox’s move follows its earlier purchase of Tubi and its continued investment in sports and news programming. The deal also positions Fox to compete more directly with other streaming platforms that have deep data analytics capabilities.
As the industry watches the outcome of the regulatory review, stakeholders will be keen to see how the combined company leverages its expanded audience and data assets. The merger could influence advertising rates, content licensing agreements and the competitive dynamics of U.S. television viewership.
The next steps will include shareholder votes, regulatory filings and the integration of Roku’s technology and data infrastructure into Fox’s operations. Investors will likely monitor the company’s earnings reports for the first quarter after the merger to assess the financial impact of the transaction.
In summary, Fox’s acquisition of Roku represents a significant consolidation in the U.S. media landscape, combining Fox’s broadcast strengths with Roku’s streaming reach and data capabilities. The deal, pending approvals, could reshape how audiences access news, sports and entertainment content in the coming years.
