Fox Corp. to Acquire Roku for $22 Billion in Cash and Stock Deal

Fox Corp. has agreed to acquire streaming platform and device maker Roku for approximately $22 billion, combining Fox's news and sports networks with Roku's dominant connected-TV hardware and software ecosystem in one of the largest media consolidation deals in recent years.

Fox announced Monday it would purchase Roku at $160 per share through a mixed cash and stock transaction. To fund the cash portion, Fox said it obtained a $12 billion loan, supplementing that financing with cash on hand.

The deal would bring together Fox's broadcast network, Fox News Channel, and its free ad-supported streaming service Tubi with Roku — the maker of streaming devices and operator of The Roku Channel, a free ad-supported service comparable to Tubi.

Fox CEO Lachlan Murdoch described the transaction as a "defining moment" for the company on a Monday call with investors, noting that Fox had been "an early investor in Roku and a longtime commercial partner" since 2019.

Murdoch said both Tubi and The Roku Channel would remain separate services after the deal closes, calling them "incredibly complementary services" with roughly a third of audience overlap between them. Tubi draws the majority of its viewership from on-demand content, while The Roku Channel leans more heavily on free live channels that replicate elements of the traditional pay-TV bundle.

Roku CEO Anthony Wood, also on the investor call, said the platform reaches more than 100 million streaming households globally and records 145 billion hours of engagement annually, describing Roku as a market leader in the United States.

Fox expects to realize approximately $400 million in run-rate cost synergies from the combination, with additional revenue upside from advertising and subscriptions. After closing, existing Fox shareholders would hold roughly 73% of the combined company, with Roku shareholders retaining approximately 27%.

The acquisition marks Fox's most significant deal since it sold its entertainment assets to Disney in a $71 billion transaction about seven years ago. Fox has since centered its portfolio around live news and sports, acquiring Tubi in 2020 for $440 million. The company launched Fox One, its direct-to-consumer streaming option, last year.

Murdoch emphasized that advertising revenue has become increasingly central to Fox's strategy, reflecting a broader industry trend as media companies lean on live sports and events — which command the largest audiences — to anchor their streaming platforms.

The boards of both companies have already approved the deal, and it is expected to close in the first half of 2027, pending regulatory review. Fox's stock was trading down approximately 15% in premarket trading on Monday following the announcement, while Roku shares were largely unchanged.

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