Media giant Fox is buying streaming firm Roku in a $22bn (£16bn) cash-and-stock deal that the companies say will create the third largest player in US television by share of viewing.
The offer of $160 per share gives Fox access to the more than 100m households using Roku’s streaming platform, as audiences shift online and advertisers spend increasing amounts on streaming. Fox chief executive Lachlan Murdoch called it “a defining moment for Fox, and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade.”
“Fox acquires Roku for $22bn in cash and stock, creating the third largest US TV player.”
Roku is the biggest streaming platform for smart TVs in the US, running on more than a quarter of internet-connected devices, according to research firm Park Associates. Its business is largely driven by advertising and subscription revenue from apps on its platform; advertising revenue alone reached $613m in the first quarter, up 27% year-on-year.
Under the takeover, Fox’s existing streaming service Tubi will combine with the Roku Channel, which offers films, TV shows and live news. Fox shareholders will own roughly 73% of the combined company after closing, with Roku investors holding the rest.
“This gives Fox greater control over discovery, data and monetization at a time when TV viewing continues to shift away from traditional channels,” said Paolo Pescatore, analyst at PP Foresight.
Fox shares fell 8% in premarket trading after the announcement, while Roku rose 2.6% to $147.50, trading below the offer price. The boards of both companies have unanimously approved the transaction, which is expected to close in the first half of calendar 2027 and generate about $400m in annual cost savings. Fox plans to fund the cash portion through new debt and cash on hand.
The tie-up comes as advertisers are spending increasing amounts on streaming platforms, with consultancy Madison and Wall predicting $20bn of spending by 2029, only slightly less than it thinks will be spent on traditional TV advertising.