Fox Corporation has agreed to acquire streaming pioneer Roku in a cash-and-stock deal valued at approximately $22 billion, including debt, in one of the largest media transactions of the year. The deal has significant implications for Los Angeles, where both companies maintain major operations.
The acquisition will give Fox access to more than 100 million global households, along with the Roku Channel and valuable first-party viewer data. Fox, which oversees a massive sports, news, and entertainment network as well as the Tubi streaming service, will combine its content library with Roku’s distribution platform.
“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 and CEO Anthony Wood, who will join the Fox board of directors after the transaction closes.
Fox CEO Lachlan Murdoch said the combined company will become the third-largest player in U.S. television by share of viewing. “We are confident this is the right transaction, at the right moment, for all the right reasons,” Murdoch said during a conference call, as NBC Los Angeles reported.
Roku, which was spun off from Netflix in 2008, has been a Los Angeles-area tech success story. Wood originally developed the streaming technology while working at Netflix in the early 2000s, motivated by his desire to record and play his favorite show, “Star Trek.” The company released its first set-top box in 2008 and has since grown into one of the dominant streaming TV platforms in North America.
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 owning about 27%.
The companies said Roku will continue to operate as an open, partner-friendly platform, meaning consumers are unlikely to see immediate changes. The deal, which requires approval from both companies’ shareholders and regulators, is expected to close in the first half of 2027.
The acquisition reflects the ongoing consolidation in the streaming and media industry, as traditional media companies seek to build scale in digital distribution. For Los Angeles’ media and tech workforce, the deal could create new opportunities as the combined entity scales its operations across streaming, advertising, and content production.
Roku’s headquarters in San Jose and its significant Los Angeles-area operations have made it a key employer in the Southern California tech ecosystem. The company has been investing in original content production through the Roku Channel, which has drawn talent from LA’s entertainment industry. Under Fox ownership, that content strategy may shift to leverage Fox’s existing production capabilities and relationships.
The deal also positions Fox to better compete with streaming giants like Netflix, Amazon Prime Video, and Disney+, all of which have both content libraries and distribution platforms. By combining Fox’s live sports rights, news programming, and entertainment content with Roku’s streaming technology and viewer data, the combined company could offer advertisers a more comprehensive cross-platform proposition.
