Fox Corp. to Acquire Roku for $22 B, Expanding Its Ad-Supported Streaming Reach

Fox Corporation announced Monday that it will acquire Roku Inc. in a cash‑and‑stock transaction valued at roughly $22 billion, or $160 per share. The deal is slated to close in the first half of 2027 and will fuse Fox’s broadcast and sports assets with Roku’s connected‑TV hardware, operating system and streaming services, including the Roku Channel.

The combination brings together Fox’s extensive portfolio of live news, sports and entertainment programming—Fox, Fox News, Fox Business and Fox Sports—with Roku’s distribution network and ad‑supported platform. Fox already owns Tubi, an ad‑supported streaming service that has grown to more than 100 million monthly active users. After the merger, the new entity will reach over 100 million global streaming households, positioning it as the third‑largest streaming platform in the United States.

"This is a defining moment for the company," Fox’s CEO and executive chair Lachlan Murdoch said. He noted that since selling its entertainment assets to Disney in 2019, Fox has pivoted toward live news, sports and the 2020 purchase of Tubi. Murdoch added that the deal will transform the company’s scale into high‑growth verticals and “yield a step change” in its overall growth profile.

Roku’s founder, chairman and CEO Anthony Wood expressed pride in the company’s achievements and said the merger offers an “extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers.” Both companies reiterated that Roku will remain an open, partner‑friendly platform and that Fox content will continue to be widely distributed on the new platform.

Financially, Fox reported $3.99 billion in revenue for the January–March 2026 quarter, down from $4.37 billion a year earlier, with net income of $175 million. Advertising revenue fell, but Tubi’s revenue rose 23 percent and total viewing time increased 19 percent, driven by creator‑led titles and Tubi originals. Roku posted $1.25 billion in revenue for the same period, up from $1.02 billion a year earlier.

The acquisition arrives amid a wave of consolidation in the entertainment sector, including the Paramount‑Skydance deal and the ongoing battle for Warner Bros. Discovery. With cable and pay‑TV subscriptions declining, the move is intended to bolster Fox’s position in the streaming wars and capitalize on the projected growth of connected‑TV advertising, which eMarketer estimates will reach $47 billion by 2028.

Fox and Roku will jointly own the combined entity’s streaming services, while Fox will continue to distribute its content across the new platform. The deal is expected to generate significant synergies in advertising, data analytics and content distribution, leveraging Fox’s first‑party viewer data across more than 100 million households.

The transaction is subject to customary closing conditions and regulatory approvals. Once completed, the combined company will rank among the largest players in the U.S. streaming market, offering a broad mix of live and on‑demand content and a robust advertising platform.

Fox’s move signals a continued shift toward live, ad‑supported content as the company seeks to offset declining traditional revenue streams. The acquisition of Roku is a concrete step toward that strategy, merging Fox’s strong live‑content portfolio with Roku’s leading distribution network and advertising technology.

The deal is expected to close in the first half of 2027, after which Fox will integrate Roku’s hardware, software and streaming services into its broader media strategy.