Fox to Acquire Roku for $22 Billion, Boosting Streaming Presence
Fox Corporation is acquiring streaming company Roku for approximately $22 billion, aiming to become a major player in the US TV market. The deal combines Fox's content portfolio, including Tubi, with Roku's popular streaming platform and devices. Expected to close in early 2027, the acquisition is subject to shareholder and regulatory approvals.
Key points
- Fox Corporation announced its intent to acquire Roku for an estimated $22 billion, including debt, at $160 per share.
- The acquisition combines Fox's content, such as live sports and news, with Roku's streaming device ecosystem and The Roku Channel, reaching over 100 million households.
- The merged entity aims to become the third-largest player in the US television industry based on viewing share.
- Roku will continue to operate as an open, partner-friendly platform, according to Roku founder and CEO Anthony Wood, who will join Fox's board.
- Fox shareholders are expected to own about 73% of the combined company, with Roku shareholders holding 27%.
- The deal is anticipated to be completed in the first half of 2027, pending approvals from shareholders and regulators.
Fox Corporation has announced a significant move into the streaming space by acquiring Roku for approximately $22 billion. The deal, valued at $160 per share and comprising cash and Fox Class A stock, aims to combine Fox's extensive content library, including live sports, news, and its Tubi streaming service, with Roku's widely adopted streaming platform and hardware.
This strategic acquisition is expected to position the combined company as the third-largest entity in the U.S. television market based on viewership share. Fox CEO Lachlan Murdoch described the move as a "defining moment" and a "natural extension" of the company's strategy, emphasizing the fusion of valuable live content with a leading streaming platform. Roku CEO Anthony Wood, who will join Fox's board, stated that Roku will maintain its operation as an open, partner-friendly platform supporting the broader streaming ecosystem.
The transaction is subject to approval from both Fox and Roku shareholders, as well as regulatory bodies. Fox has secured $12 billion in bridge financing for the deal. If completed, it is expected to significantly enhance Fox's presence in the high-growth areas of advertising and streaming subscriptions, with an anticipated closing in the first half of 2027. Fox shareholders are projected to hold roughly 73% of the new entity, with Roku shareholders retaining 27%.
Sources
The WireByte editorial team synthesises technology news from multiple primary sources, verifies the facts, and links every source. Articles are produced with AI assistance and reviewed under our editorial policy.