Fox Corp. has agreed to acquire streaming pioneer Roku in a cash-and-stock deal valued at approximately $22 billion, including debt, in a transaction that will reshape the media landscape in Los Angeles and beyond. The deal gives Fox access to more than 100 million global households and the Roku Channel’s first-party data capabilities.
The announcement follows media reports that Roku was exploring strategic options, including a possible sale. Speculation had swirled about potential buyers including Netflix, Amazon, Comcast, and Disney, but Fox emerged as the winner. Fox Corp. CEO Lachlan Murdoch said the combined company will be better positioned for the next decade of video than either company would have been alone.
“The combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers,” said Roku founder Anthony Wood, who will join the Fox board of directors after the transaction closes and continue in an ongoing operational role.
Under the terms of the deal, Fox will pay $96 in cash and 0.9693 shares of its Class A common stock for each Roku Class A and Class B share outstanding, valuing the transaction at $160 per Roku share. Existing Fox shareholders will own approximately 73% of the combined company, with Roku shareholders holding about 27%.
For Los Angeles, where both Fox and Roku have significant operations, the merger has substantial implications. Fox oversees a massive sports, news, and entertainment network along with Tubi, the ad-supported streaming service it acquired in 2020. The companies said the combined entity will become the third-largest player in U.S. television by share of viewing.
The deal highlights the ongoing consolidation in the streaming industry, coming on the heels of Comcast’s announcement that it plans to split into two companies by spinning off NBCUniversal and Sky. The move will separate Comcast’s media and entertainment assets from its broadband and wireless business, with Mike Cavanagh leading the new NBCUniversal and Michael Angelakis returning to lead Comcast.
Roku has deep ties to the Los Angeles tech ecosystem. Founded by Wood, who originally worked within Netflix in the early 2000s as that company attempted its shift from DVD rentals to streaming, Roku was spun off by Netflix and released its first set-top box in 2008. The company said Roku will continue to operate as an open, partner-friendly platform, meaning consumers are unlikely to see immediate changes.
The transaction is expected to close in the first half of 2027, pending approval from Fox and Roku shareholders and regulatory clearance.
