Prime Highlights
- Fox is acquiring Roku for $22 billion, combining its content with Roku’s platform reaching 100 million users, strengthening its position as the third-largest U.S. TV viewing player.
- The deal brings together Fox’s sports and entertainment assets with Roku’s streaming ecosystem to better compete with major streaming giants.
Key Facts
- Fox will pay $160 per share, a 20% premium, with the deal expected to close in early 2027 and deliver about $400 million in savings.
- The acquisition marks a major step in Fox’s long-term streaming strategy, according to CEO Lachlan Murdoch.
Background
Fox is making its boldest streaming move yet, agreeing to buy Roku for $22 billion in a deal that reshapes the competitive landscape of American television. The two companies confirmed the transaction, which hands Fox a platform that already reaches 100 million people through Roku’s devices and services.
Combined with Fox’s live sports, news and entertainment programming and its free Tubi streaming service, the merged business will hold more than a five per cent share of United States television viewing, placing it third behind YouTube and Netflix.
Fox has been building toward a stronger streaming presence for years, launching its Fox One service last August, but the Roku deal gives it the distribution muscle and audience scale it has lacked.
The urgency grew after Warner Bros. Discovery received initial regulatory approval to merge with Paramount, pushing Fox to move quickly and secure its own competitive position.
Lachlan Murdoch, Chief Executive Officer of Fox, said the deal brings together the most valuable live content portfolio in video with the leading streaming platform through which Americans watch it.
He described the moment as a natural extension of the strategy Fox has been executing for nearly a decade. Fox will pay $160 per share for Roku, representing a premium of around 20 per cent above its recent closing price.
The companies expect the deal to close in the first half of 2027 and forecast combined cost savings of $400 million. The acquisition puts Fox in a far stronger position to challenge the dominance of YouTube, Netflix, Amazon, Disney Plus, HBO Max, Paramount Plus and Peacock, services that have pulled audiences away from traditional broadcasting over the past decade.
With Roku’s reach and Fox’s content, the combined company enters that fight with considerably more weight behind it.