A media empire built on cable news and live sports is buying the operating system that powers millions of smart TVs. Fox Corp has agreed to acquire Roku, the streaming platform, in a cash-and-stock deal valued at about $22bn (£16bn). The move is a bet that combining Fox's sports and news programming with Roku's reach — more than 100 million households globally — will allow the company to thrive as audiences abandon traditional TV for streaming. "This is a defining moment for Fox," said chief executive Lachlan Murdoch, calling it "the next step" in a strategy that began with the acquisition of streaming service Tubi in 2020. Under the terms, Roku investors will receive $96 in cash and about 0.97 Fox Class A shares for each Roku share, valuing the offer at $160 per share. The boards of both companies have unanimously approved the transaction, which is expected to close in the first half of 2027. The combined company is projected to become the third-largest player in US television by viewership.
To understand why Fox is spending billions on a streaming platform, it helps to know what Roku is and how it makes money. Roku is best known for its operating system, which runs on smart TVs and streaming devices, giving users access to apps like Netflix, Amazon Prime, and YouTube. It is the biggest streaming platform for smart TVs in the US, running on more than a quarter of internet-connected devices there, according to research firm Park Associates. Beyond the hardware and software, Roku's business is largely driven by advertising and subscription revenue from the apps on its platform. In the first quarter of its financial year, advertising revenue was $613m, up 27% year-on-year. Roku also operates its own free-to-watch channel, the Roku Channel, which carries films, TV shows and live news. The company has produced original content such as *Honest Renovations*, a renovation show hosted by Jessica Alba and Lizzy Mathis, and *The Reunion: Laguna Beach*.
“Explains Fox's $22bn acquisition of Roku and what it means for streaming.”
Fox, meanwhile, is a traditional media powerhouse. It dominates cable TV with its sports lineup — including NFL, MLB and NASCAR — and top-rated Fox News. But its streaming presence has been limited to Tubi, a free, ad-supported service, at a time when "cord-cutting" — consumers cancelling cable subscriptions — is accelerating the shift from linear TV. "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." Now, by adding Roku, Fox gains not only a massive audience but also control over discovery, data and monetisation — something analysts say is crucial as TV viewing continues to shift away from traditional channels. "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, an analyst at PP Foresight.
For UK readers, the deal is a reminder that the streaming wars are now as much about platforms as they are about content. Roku is available in the UK, though its market share is smaller than in the US. The acquisition could ultimately affect how British viewers access Fox content — for example, Fox News or sports coverage — if Fox decides to integrate its channels more deeply into Roku's interface. It also signals that the race to consolidate streaming technology is global: Amazon has Fire TV, Google has Android TV and Chromecast, and Apple has Apple TV. Fox's acquisition of Roku creates a powerful new combination of content and distribution that could reshape ad markets. Consultancy Madison and Wall predicts that advertisers will spend $20bn on streaming by 2029, only slightly less than they spend on traditional TV advertising. By combining Fox's premium live content with Roku's user data and advertising infrastructure, the merged company aims to capture a bigger slice of that spending.
Q: What is Roku? A: Roku is a streaming platform that runs on smart TVs and streaming devices, offering access to apps like Netflix, Amazon Prime and YouTube. It has more than 100 million streaming households globally and is the biggest streaming platform for smart TVs in the US. Its operating system also hosts its own free ad-supported channel, the Roku Channel.
Q: Why is Fox buying Roku? A: Fox wants to strengthen its position as TV audiences move online. By owning a leading streaming platform, Fox can better target ads, reduce reliance on cable distributors, and combine its live sports and news content with Roku's large user base. The deal is expected to make the combined company the third-largest player in US television by viewership and generate about $400m in annual cost savings.
Q: What does this mean for streaming services I use? A: In the short term, likely very little — the deal is not expected to close until the first half of 2027. Over time, Fox may integrate its content more deeply into Roku's interface, potentially offering exclusive access or bundled services. Roku's own channel and Tubi (Fox's existing streaming service) are expected to combine, creating a larger ad-supported offering. Rivals include Amazon Fire TV, Google TV, Apple TV and Tizen.
What happens next? The transaction still requires regulatory approvals and is expected to close in the first half of 2027. Fox plans to fund the cash portion through new debt and cash on hand, backed by its balance sheet. Investors will watch how quickly the combined company can integrate its advertising technology and content libraries, and whether regulators in the US or elsewhere raise concerns about market concentration. For now, the deal is a clear signal that the biggest media companies believe the future of television is not just about what you watch, but where and how you watch it.