Fox acquires Roku in a $22 billion deal

Fox Confirmed Monday It is acquiring streaming company Roku in a stock-and-cash deal worth about $22 billion. Fox said the deal will create a media and technology company centered around two trends that are reshaping video consumption: the continued appeal of live sports and news, and the growth of live streaming.

Fox says the deal will create the third-largest television company in the United States. The deal combines Fox’s news and sports channels, along with free, ad-supported streaming service Tubi, and Roku’s connected TV platform.

Fox says this combination will allow a large audience to be reached via linear and streaming.

The deal gives Fox access to Roku’s audience of 100 million households, helping the company target ads more effectively and rely less on traditional delivery. Fox says the acquisition will give it “broader entry” into the high-growth sector of connected TV, especially advertising and streaming subscriptions.

Fox CEO Lachlan Murdoch described the acquisition as a “defining” moment for the company.

“This combination will shift our company’s scope into high-growth sectors and will significantly change our overall growth profile,” Lachlan said in a press release. “Roku pioneered live TV and has scaled it to become a leading CTV platform. Together, we intend to lead the next chapter.”

Fox It acquired Tobi for $440 million The year 2020 is at the peak of competition across the live streaming industry. Last year, the company launched Fox One, a direct-to-consumer streaming service.

“I’m incredibly proud of what our team has built, and merging with Fox is an exceptional opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers,” said Anthony Wood, founder and CEO of Roku. “I couldn’t be more excited about what we will achieve together.”

The deal has been approved by the boards of directors of both companies and is expected to close in the first half of 2027. Fox says it has secured a $12 billion loan for the acquisition.