Fox to acquire Roku in $22 billion deal

In a groundbreaking announcement, Fox has confirmed its acquisition of streaming platform Roku in a deal valued at approximately $22 billion, involving both stock and cash. This significant merger aims to forge a new media and technology powerhouse, capitalizing on two pivotal trends that are reshaping video consumption: the enduring popularity of live sports and news, alongside the rapid growth of streaming services. The merger positions Fox to become the third-largest television entity in the United States, merging its established news and sports channels, along with its free ad-supported streaming service, Tubi, with Roku's innovative connected TV platform. This strategic combination is poised to enhance audience engagement across both traditional and streaming platforms, allowing Fox to reach a broader viewer base. With Roku's impressive footprint of 100 million households, Fox anticipates a more efficient advertising approach, reducing reliance on conventional distribution methods. This acquisition is set to deepen Fox's penetration into the burgeoning connected TV sector, particularly in areas like digital advertising and streaming subscriptions. Fox CEO Lachlan Murdoch hailed the acquisition as a pivotal moment for the company, stating, "This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile." He further emphasized Roku's pioneering role in the streaming landscape, expressing confidence in leading the next chapter of innovation together. Roku, which Fox previously acquired Tubi for $440 million in 2020 amidst fierce competition in the live streaming arena, has been on a growth trajectory. Roku's founder and CEO, Anthony Wood, expressed enthusiasm about the merger, stating, "I’m incredibly proud of what our team has built, and the combination with Fox is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers." The boards of directors of both companies have already approved the deal, with expectations for finalization in the first half of 2027. To facilitate this acquisition, Fox has secured a substantial $12 billion loan.