Fox Corp. to Acquire Roku in $22 Billion Deal

Fox Corp. has entered into an agreement to acquire Roku, valuing the connected TV company at $22 billion. The acquisition will be funded through a combination of on-hand cash and Fox Class A stock.

Both companies anticipate the transaction will be finalized in 2027, contingent upon regulatory approvals. Upon the merger's completion, Fox shareholders are expected to own approximately 73% of the combined entity, with Roku shareholders holding roughly 27%.

Fox CEO Lachlan K. Murdoch described the acquisition as a "defining moment" for the company, stating that Roku would operate as an "open, partner-friendly platform." Roku Founder, Chairman, and CEO Anthony Wood is slated to join the Fox Board of Directors following the deal's closure.

A press release from Fox highlighted the strategic rationale, stating that the combined entity would be a "scaled next-generation media and technology company" positioned to leverage the growth of live sports and news, as well as the continued rise of streaming. Fox Corp. also emphasized the value of Roku’s audience data, platform technology, and advertising opportunities.

Roku provides a leading operating system for smart TVs and manufactures its own streaming devices, reportedly reaching over 100 million streaming households. This move is not Fox's first into the streaming sector, having acquired the free streaming service Tubi for $440 million in 2020. Fox also launched its direct-to-consumer streaming service, FOX One, last year.

According to IGN, the acquisition represents an aggressive shift in Fox’s corporate strategy, which has historically focused on broadcast television.