FOX Bets Big on TV Streaming With $22 Billion Roku Acquisition
In Focus
- Boards in both companies have approved the acquisition of Roku by FOX
- The transaction will be completed in the first half of 2027
- FOX plans to pair its news and sports content with Roku’s streaming service
FOX Corp is acquiring streaming company Roku in a cash-and-stock deal. The FOX Roku acquisition deal values the TV streaming company at about $22 billion. By acquiring Roku, FOX is looking to pair its news, entertainment, and sports content with a leading TV streaming service to boost its position as more viewers shift online.
Why is FOX Acquiring Roku?
FOX enjoys significant influence in cable TV due to its highly rated Fox News and sports content. However, the media outlet struggles to retain viewers as more people shift to streaming service platforms like Roku, Netflix and HBO Max.
Growing competition sparked by realignments in the industry also pose significant challenges for the company. Last week, U.S. courts ruled in favor of Paramount Skydance Corp, allowing it to acquire Warner Bros. Discovery in a $110 billion deal.
This acquisition will pave the way for Paramount to build an industry giant that rivals CNN and CBS. In December 2025, Netflix and Warner Bros. Discovery had reached a $72 billion cash-and-stock acquisition agreement for the HBO studio and HBO Max streaming business. However, intense competition and regulatory scrutiny caused Netflix to drop its bid, leaving Paramount to pursue the company.
“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. This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile,” FOX Corporation Executive Chair and CEO, Lachlan K. Murdoch stated.
The boards in both companies have already approved the FOX Roku deal. The companies are working to close the transaction in the first half of 2027. The move is expected to save both firms a total of $400 million in annual costs.
What Advantage is Roku Offering FOX Corporation?
Roku was among the first companies to introduce streaming platforms like YouTube and Netflix to television via connected devices and smart TVs. The platform generates most of its revenue from advertising and subscription to streaming apps.
In Q1 2026, the company’ s advertising business generated $631 million in revenue, representing a 27% increase year-on-year. Roku also manages a free-to-watch channel.
“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,” Roku Founder and CEO, Anthony Wood said.
What Next for FOX?
FOX is set to become the third-largest media outlet by viewership after the merger with Roku. The news outlet already operates the Fox One subscription service and the free-to-watch platform, Tubi.
Following the acquisition, Roku investors are expected to receive $96 in cash and an estimated $0.97 in FOX Class A stock for every share held, which values the offer at $160 per share. This represents a 33.7% premium to Roku’s share price as at June 11. Overall, FOX shareholders will hold a 73% stake in the merged company while Roku investors control about 27%.
