Fox to acquire Roku in $22 billion streaming and advertising deal

MUMBAI: The remote control may soon have a new owner and it comes with a newsroom, a sports desk and a streaming empire attached. In a deal that could redraw the contours of the television and streaming business, Fox Corporation has agreed to acquire Roku in a transaction valued at approximately $22 billion, combining one of the world’s largest portfolios of live sports and news content with a streaming platform that reaches more than 100 million households globally.

Under the agreement, Fox will acquire Roku for $160 per share through a mix of cash and stock, offering a premium over the streaming company’s recent market valuation. The deal marks Fox’s biggest strategic move since acquiring free streaming service Tubi in 2020 and signals a decisive push deeper into the booming connected TV and digital advertising markets.

The transaction brings together two powerful pieces of the modern media puzzle. Fox contributes a vast catalogue of live sports, news and entertainment programming, while Roku brings its streaming operating system, advertising technology, first-party consumer data and direct relationships with millions of viewers.

For Fox, the acquisition is about more than content. It is a bid to secure a stronger foothold in the platforms and technologies increasingly shaping how audiences watch television and how advertisers reach them.

Roku, founded by Anthony Wood, has evolved from a streaming device maker into one of the industry’s most influential gateways, connecting viewers to services such as Netflix, YouTube and hundreds of other streaming applications through smart TVs and connected devices. Advertising and platform services have become key drivers of its business, making it an attractive asset in an era where traditional television revenues are under pressure.

The combined company would unite Tubi and The Roku Channel under one roof, creating a significantly larger streaming footprint and strengthening Fox’s ability to compete for viewers and advertising budgets in an increasingly crowded market.

Fox said the acquisition is expected to generate around $400 million in annual cost synergies, while increasing its exposure to faster-growing digital advertising and subscription-led streaming revenues.

Ownership of the merged entity will remain largely with Fox investors. Upon completion, existing Fox shareholders are expected to hold about 73 per cent of the combined company, while Roku shareholders will own the remaining 27 per cent. Wood is also expected to join Fox’s board after the transaction closes.

The deal has received unanimous approval from the boards of both companies and remains subject to shareholder and regulatory clearances. If approved, the acquisition is expected to close during the first half of 2027.

For an industry racing towards streaming, Fox is not just chasing viewers anymore, it is buying the roads they travel on.