Fox Acquires Roku for $22 Billion in Landmark Streaming Deal
Fox Corporation announced Monday that it will acquire streaming platform Roku in a cash-and-stock deal valued at approximately $22 billion, a landmark transaction that positions the combined company as the third-largest player in U.S. television by share of viewing. The acquisition merges Fox’s premium live sports and news content with Roku’s connected TV platform, which reaches more than 100 million global streaming households.
A Defining Moment for Fox
Under the terms of the deal, Fox will pay $160 per Roku share — $96 in cash and 0.9693 shares of Fox Class A common stock. Fox has secured $12 billion in committed bridge financing from Morgan Stanley Senior Funding, Inc. to fund the cash portion, with pro forma net leverage expected at approximately 2.8x. The transaction is expected to close in the first half of 2027, subject to shareholder and regulatory approvals.
According to NBC News, the deal makes Fox the third-largest television company in the U.S. by viewership, combining Fox’s broadcast and cable networks with Roku’s streaming platform and its namesake channel. The combined entity generated approximately $9 billion in advertising revenue over the last twelve months.
Lachlan K. Murdoch, Executive Chair and CEO of Fox Corporation, called the acquisition “a defining moment for FOX” in the company’s official press release. “In 2019, we reoriented the company around live news and sports. In 2020, we acquired Tubi and under our stewardship it has become one of the most successful businesses in streaming. Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it.”
Strategic Rationale: Vertical Integration and Advertising Scale
The acquisition represents a major bet on vertical integration in the streaming industry. Rather than remaining a content supplier to platforms like Roku, Fox will now control the full streaming stack — content creation, distribution, platform technology, and first-party viewer data.
As TechCrunch reported, the deal reflects two forces reshaping how people watch video: the enduring pull of live sports and news, and the relentless growth of streaming. Fox’s portfolio includes rights to the NFL, MLB, NASCAR, Big Ten, and the FIFA World Cup, while Fox News remains the dominant cable news network.
Roku founder, Chairman and CEO Anthony Wood will have an ongoing role at the combined company and will join the Fox Board of Directors following the close of the transaction. “Over the past two decades, we’ve built Roku into the leading TV streaming platform, reaching more than 100 million households globally and reshaping how people discover and enjoy entertainment,” Wood said in the press release.
Advertising at the Center of the Deal
Industry analysts have zeroed in on advertising revenue as the core strategic driver of the acquisition. Mike Proulx, Research Director at Forrester, told the Associated Press that “the bigger play here is advertising revenue, something all the major streamers are now jockeying for.” Proulx added that “streaming is no longer just about quality content slates. It’s about controlling the full stack. If this deal closes, Fox will control more of what viewers watch, how they discover it, and how it gets monetized.”
Fox generated approximately $6.5 billion in advertising revenue over the last twelve months, while Roku contributed about $2.5 billion. The connected TV advertising market is forecast to reach approximately $60 billion by 2030, according to eMarketer data cited by the companies.
Market Reaction and Integration Plans
Fox’s shares fell approximately 15-18% on Monday, reflecting investor concern about the premium paid — 11% above Roku’s Friday closing price — and the integration risks associated with a deal of this magnitude. Roku shares declined roughly 2%, following a 20% gain on Friday when reports surfaced that the company was exploring strategic options.
According to CNBC, Fox expects to achieve approximately $400 million in annual run-rate cost synergies, with the deal expected to be accretive to free cash flow per share by the second full year after closing. Fox plans to maintain its shareholder capital return program and investment grade rating.
A Broader Wave of Consolidation
The acquisition comes amid a sweeping wave of media consolidation. Fox’s transformation began in 2019 when it sold its entertainment assets to Disney for $71 billion, reorienting the company around live news and sports. The company acquired Tubi for $440 million in 2020 and launched its direct-to-consumer service Fox One in 2025.
A proposed merger between Paramount/Skydance and Warner Bros. Discovery is also underway, signaling that the streaming industry’s consolidation phase is far from over. Fox and Roku have emphasized that Roku will continue to operate as an open, partner-friendly platform, maintaining access to competitors’ apps including Netflix, YouTube, and Amazon Prime Video.
What’s Next
The transaction still requires approval from Fox and Roku shareholders, as well as U.S. and certain non-U.S. regulatory approvals. Anthony Wood and associated entities holding a majority of Roku voting power have already agreed to vote in favor. If approved, the deal is expected to close in the first half of 2027, setting the stage for a new competitive dynamic in the streaming wars.
As Lachlan Murdoch told investors during Monday’s conference call, the combined company will be better positioned for the next decade of video than either company would have been alone. “We are confident this is the right transaction, at the right moment, for all the right reasons,” he said.