Fox Corp. has agreed to buy streaming platform Roku in a cash-and-stock deal valued at approximately $22 billion, including debt, in a move that reshapes the competitive landscape for Los Angeles-based media companies.
The deal gives Fox access to more than 100 million global households, along with the Roku Channel and its first-party data. Fox oversees a massive sports, news, and entertainment network, as well as the Tubi streaming service acquired in 2020. The combined company will become the third-largest player in U.S. television by share of viewing.
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 are expected to own approximately 73% of the combined company, with Roku shareholders owning about 27%.
“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 Corp. CEO Lachlan Murdoch said the deal brings together Fox’s live news and sports content with a streaming platform with large viewership, giving Fox greater exposure to advertising and streaming subscriptions. “We are confident this is the right transaction, at the right moment, for all the right reasons,” Murdoch said during a conference call.
The acquisition highlights the intensifying consolidation in the streaming and media sector. Roku, which was originally spun off from Netflix in 2008, had been exploring strategic options including a possible sale. Speculation about potential buyers had included Netflix, Amazon, Comcast, and Disney before Fox emerged as the acquirer.
For Los Angeles, where both Fox and Roku have significant operations, the deal signals continued consolidation in the entertainment industry. The companies 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. Fox’s stock declined before market open following the announcement, while Roku shares rose slightly.
The deal comes amid a wave of media industry consolidation, including Comcast’s spinoff of NBCUniversal and Sky, and the pending Paramount-Warner Bros. Discovery merger, which faces its own antitrust challenges from state attorneys general.
Sources: NBC Los Angeles, Fox Business
