Fox Agrees to Buy Roku in $22 Billion Acquisition Deal

Fox Roku acquisition plans moved forward Monday after Fox Corporation announced a definitive agreement to purchase Roku in a transaction valued at approximately $22 billion. The deal brings together one of the largest television and digital media companies in the United States with a streaming platform that reaches more than 100 million households through connected television devices, operating systems, and advertising services. The companies stated that the transaction will be completed through a combination of cash and Fox Class A common stock, subject to shareholder and regulatory approvals. 

The agreement marks the largest acquisition undertaken by Fox since the company was established following the restructuring of Rupert Murdoch’s media assets. Company executives described the transaction as a major expansion of Fox’s direct relationship with streaming audiences. Under the terms announced by the companies, Roku shareholders will receive a combination of cash and stock that values the company at approximately $160 per share. 

Fox stated that existing shareholders of the company are expected to own about 73% of the combined business after the transaction closes, while Roku shareholders will hold the remaining 27%. The companies expect the acquisition to close during the first half of 2027 if required approvals are secured.

Fox Expands Reach Through Roku Platform

The acquisition gives Fox direct access to Roku’s streaming ecosystem, which serves more than 100 million households globally. Roku operates one of the most widely used connected television platforms and also runs The Roku Channel, a free ad-supported streaming service available across multiple devices. 

Fox executives said the combination will connect the company’s portfolio of sports, news, and entertainment content with Roku’s distribution network and advertising technology. Fox currently owns broadcast television assets, cable news operations, sports media rights, and streaming services including Tubi and Fox One. The addition of Roku would significantly expand the company’s direct consumer footprint.

Lachlan Murdoch, executive chair and chief executive officer of Fox, described the transaction as a defining moment for the company. Fox indicated that integrating premium live content with a major streaming distribution platform would create new opportunities for advertising sales, audience engagement, and content delivery. 

The acquisition also provides Fox with greater control over how viewers discover and access content. Roku’s operating system powers smart televisions and streaming devices used by millions of consumers, making it a significant gateway for streaming services seeking audience reach. 

Transaction Details and Ownership Structure

According to information released by the companies, Roku shareholders will receive $96 in cash plus Fox stock for each Roku share held. The cash-and-stock structure allows Fox to complete the purchase while maintaining a substantial portion of ownership among existing shareholders. 

Fox said it will finance the transaction using cash reserves and additional financing arrangements. Reports indicated that Morgan Stanley is providing bridge financing valued at approximately $12 billion to support the acquisition. 

Boards of directors at both companies have approved the agreement. The transaction remains subject to customary closing conditions, including regulatory reviews and approval by Roku shareholders. Company statements indicated that they expect the process to continue through the coming months before a targeted closing in 2027. 

Market reaction reflected the scale of the acquisition. Roku shares rose following reports of the agreement, while Fox shares declined in premarket trading after the announcement. Investors evaluated both the strategic rationale of the deal and the financial commitments required to complete it.

Roku’s Position in the Streaming Market

Founded by Anthony Wood, Roku has developed from a streaming hardware company into a major television platform business. Its operating system powers smart televisions produced by multiple manufacturers, while its streaming devices remain widely used across North America and other markets. 

The company generates a significant portion of its revenue from advertising, content distribution agreements, and platform services. The Roku Channel has become a key component of its business, offering free ad-supported content and premium subscription options.

In recent months, Roku expanded its content offerings and platform services. The company introduced new subscription options, including distribution arrangements involving Fox One, allowing users to access Fox content directly through Roku’s ecosystem. Those partnerships provided an existing business relationship between the companies before acquisition discussions became public. 

Reports published days before the announcement indicated that Roku had been exploring strategic alternatives, including a potential sale. Interest reportedly stemmed from the company’s large audience base and established advertising platform. 

Anthony Wood is expected to join Fox’s board following completion of the transaction. Fox stated that Roku will continue operating as an open platform serving a wide range of streaming providers and content partners.