Fox strikes $22B deal to acquire Roku
What's the deal? Fox CorporationDealroom has a profile for this one. Try Dealroom → is set to acquire streaming platform Roku for roughly $22 billion in a cash-and-stock transaction, marking one of the largest media deals in recent years. Fox will pay $160 per share, funding the cash portion with cash on hand and a $12 billion loan. The acquisition gives Fox — primarily known for its broadcast and cable networks — a major foothold in connected TV and streaming hardware. Roku, which operates one of the most widely used streaming platforms in the US, reaches more than 100 million streaming households globally. The deal has been approved by both boards and is expected to close in the first half of 2027; existing Fox shareholders would own roughly 73% of the combined company, Roku shareholders about 27%.
Why now? The media landscape is shifting rapidly toward streaming, and traditional broadcasters face mounting pressure to secure direct-to-consumer distribution. Roku's platform offers Fox a powerful distribution layer it currently lacks, as competition among media conglomerates to own streaming infrastructure — not just content — intensifies. Fox's move also reflects the growing value of connected TV advertising: Roku has built a significant ad business on top of its free, ad-supported Roku Channel, complementing Fox's own free streamer TubiDealroom has a profile for this one. Try Dealroom →. CEO Lachlan Murdoch said the companies intend to keep Tubi and The Roku Channel separate after the deal closes, calling them "incredibly complementary services."
Why it matters. The acquisition comes about seven years after Fox's last major deal, when it shed its entertainment assets in a $71 billion transaction with DisneyDealroom has a profile for this one. Try Dealroom → and reoriented around live news and sports. Owning the distribution platform — the operating system, the interface, the remote control — has become as strategically important as owning the shows and sports rights. If it closes, the deal would position Fox as both a content powerhouse and a platform operator, a combination few traditional media companies have achieved.
What could go wrong? Integrating a hardware-and-software platform with a legacy broadcast operation is no small task, and a deal of this size will likely draw antitrust scrutiny. Roku's hardware business also runs on razor-thin margins — devices have historically been sold at or near cost to grow the platform user base — a strategy that may not align neatly with Fox's financial priorities. Fox said it expects approximately $400 million in run-rate cost synergies from the deal.
Read more: CNBC
