Fox Corporation has announced a definitive agreement to acquire Roku, the streaming platform pioneer, in a cash-and-stock deal valued at approximately $22 billion. This strategic move aims to combine Fox’s extensive sports, news, and entertainment content with Roku’s leading connected TV platform, The Roku Channel, and its substantial user base of over 100 million global streaming households.
Under the terms of the agreement, Fox will pay $160 per share for Roku, consisting of $96 in cash and 0.9693 shares of Fox Class A common stock for each Roku share. This valuation represents a significant premium over Roku’s recent stock price, offering substantial value to Roku shareholders. Upon completion of the transaction, existing Fox shareholders will own approximately 73% of the combined company, while Roku shareholders will hold about 27%.
Roku, established in 2008, has been instrumental in bringing streaming platforms like Netflix and YouTube to television through connected devices and smart TVs. The company’s business model is largely driven by advertising and subscription revenue from streaming apps on its platform. In the first quarter of 2026, Roku reported advertising revenue of $613 million, marking a 27% year-over-year increase.
Fox’s acquisition of Roku is expected to create a scaled next-generation media and technology company positioned at the intersection of live sports, news, and the continued rise of streaming. The combined entity is projected to become the third-largest player in U.S. television by share of viewing, offering a diversified mix of content across broadcast, cable, local, and streaming platforms.
Both companies have emphasized their commitment to maintaining Roku as an open, partner-friendly platform. This approach aims to ensure the continued ubiquitous distribution of Fox content and to foster innovation and growth within the streaming industry.
The transaction is subject to regulatory approval and is anticipated to close in the first half of 2027. Upon completion, Roku’s founder and CEO, Anthony Wood, will continue to play an active role in the company and is expected to join Fox’s board of directors.
This acquisition signifies a significant shift in the media landscape, as traditional broadcasters like Fox adapt to the evolving consumption habits of audiences who are increasingly favoring streaming services over traditional cable. By integrating Roku’s technology and user base, Fox aims to enhance its digital presence and better compete in the rapidly changing media environment.
