Fox Corp said Monday it will acquire Roku in a cash-and-stock deal valued at about $22 billion, betting that a combination of its sports and news programming with a leading streaming platform will strengthen its position as audiences continue shifting away from traditional television.
The agreement gives Fox access to more than 100 million households using Roku’s streaming ecosystem, expanding its ability to target advertising and reduce reliance on legacy cable distribution models.
It marks Fox’s first major acquisition since CEO and Chairman Lachlan Murdoch consolidated control over the media group built by his father, Rupert Murdoch, following a family settlement last year.
Lachlan Murdoch called the transaction a “defining moment” for Fox, saying it brings together “the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it,” Reuters reported.
Fox shares fell nearly 14% in premarket trading following the announcement, while Roku rose about 0.5% to $144.60, still trading below the implied offer value of $160 per share.
Roku, an early pioneer in bringing streaming services such as Netflix and YouTube to television screens through connected devices and smart TVs, generates most of its revenue from advertising and subscription distribution across its platform, including its free ad-supported Roku Channel.
Advertising remains its core business driver, with revenue of $613 million in the first quarter, up 27% year over year.
Under the terms of the deal, Roku shareholders will receive $96 in cash and about 0.97 Fox Class A shares per share, valuing the transaction at $160 per share. That represents a 33.7% premium to Roku’s close on Thursday, before reports emerged that the company was reviewing strategic options, including a potential sale.
Fox, which dominates U.S. cable television through its sports rights portfolio and Fox News, has been under pressure from cord-cutting trends as viewers move toward streaming platforms. The company also faces intensifying competition as consolidation reshapes the media landscape.
Last week, the U.S. Justice Department’s Antitrust Division cleared Paramount Skydance Corp’s planned $110 billion acquisition of Warner Bros. Discovery, a deal that would create a major entertainment and news conglomerate spanning studios and networks including CNN and CBS.
Fox said acquiring Roku would enhance its competitive position, potentially making the combined company the third-largest U.S. television player by viewership.
The company already operates the free streaming platform Tubi and Fox One, its subscription streaming service launched last year.
“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. “Bringing together premium content, live sports, advertising and platform distribution under one roof creates a compelling proposition.”
After closing, Fox shareholders will own about 73% of the combined company, with Roku investors holding the remainder. The boards of both companies unanimously approved the transaction, which is expected to close in the first half of 2027 and generate about $400 million in annual cost savings.
Fox plans to finance the cash portion through new debt and existing cash reserves, supported by $12 billion in committed bridge financing from Morgan Stanley.
