Lachlan Murdoch called it a “defining moment” for Fox – a $22bn bet that pairing its live sports and news with America’s biggest streaming platform can win the battle for viewers as television migrates online.
The Fox chief executive announced on Monday that the media giant is buying Roku in a cash-and-stock deal valued at about $22bn, giving Fox access to more than 100m households that use the streaming platform. Under the terms, each Roku share is worth $160 – comprising $96 in cash and about 0.97 Fox Class A shares.
“Fox buys Roku for $22bn, gaining 100m households in a streaming push to become third-largest US TV player.”
“In 2019, we reoriented the company around live news and sports,” Murdoch said. “In 2020, we acquired Tubi and under our stewardship it has become one of the most successful businesses in streaming. Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it.”
Roku, which runs on more than a quarter of internet-connected TVs in the US according to Park Associates, was one of the first to bring streaming services like Netflix and YouTube to mass audiences. Its business is largely driven by advertising – revenue of $613m in the first quarter, up 27% year-on-year – and it also operates the free-to-watch Roku Channel. Fox’s existing ad-supported streaming service, Tubi, will combine with Roku’s channel to create one of the biggest streaming services in the US, rivaling Netflix and Amazon.
The combined company will become the third-largest player in US television by share of viewing, the companies said, as advertisers shift spending online. Consultancy Madison and Wall predicts $20bn of ad spending on streaming platforms by 2029, only slightly less than traditional TV advertising.
“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 shareholders will own roughly 73% of the combined company after closing, with Roku investors holding the rest. The boards of both companies have unanimously approved the transaction, expected to close in the first half of 2027 and generate about $400m in annual cost savings. Fox plans to fund the cash portion through new debt and cash on hand.
Investor reaction was mixed: Fox shares fell 8% in premarket trading, while Roku rose 2.6% to $147.5, still below the offer price. The deal is Fox’s first major acquisition since Lachlan Murdoch cemented control over the empire his father Rupert built, following a family settlement last year.