Fox Corporation has announced a definitive agreement to acquire Roku, Inc. in a cash-and-stock transaction valued at approximately $22 billion, or $160 per share. This strategic move aims to merge Fox’s live news and sports content with Roku’s extensive streaming platform, positioning the combined entity as the third-largest player in U.S. television by share of viewing.
Under the terms of the agreement, Fox will pay $96 in cash and 0.9693 shares of its Class A common stock for each Roku share. Upon completion, existing Fox shareholders are expected to own approximately 73% of the combined company, while Roku shareholders will hold about 27%. The deal is subject to regulatory approval and is anticipated to close in the first half of 2027.
Roku, founded in the early 2000s, has grown into a dominant streaming platform, offering access to over 100 million global households. Its business model primarily relies on advertising and subscription revenues from the various streaming applications available on its platform. In the first quarter of 2026, Roku reported advertising revenues of $613 million, marking a 27% increase compared to the same period the previous year.
Fox’s acquisition of Roku is a significant step in its strategy to expand its presence in the streaming market. By integrating Roku’s technology and user base with Fox’s content portfolio, the company aims to enhance its advertising and subscription revenue opportunities. Roku will continue to operate as an open, partner-friendly platform, maintaining its existing business model. Roku’s CEO, Anthony Wood, will join Fox’s board of directors following the transaction’s closure.
This acquisition reflects the ongoing consolidation in the media and entertainment industry, as companies seek to strengthen their positions in the competitive streaming landscape. By combining Fox’s content with Roku’s platform, the merged entity is poised to offer a comprehensive streaming experience to a vast audience, potentially reshaping the dynamics of television viewership in the United States.
