Fox said it will acquire Roku for $160 a share in a $22 billion cash-and-stock deal aimed at expanding its position in streaming.
Fox Corp. said Monday it has agreed to acquire Roku in a cash-and-stock transaction valued at about $22 billion, a deal that would combine Fox’s television, news and sports assets with one of the largest streaming platforms in the United States.
Fox said it will pay $160 per Roku share and expects the acquisition to close in the first half of 2027. The company said the combined business would become the third-largest player in U.S. television by share of viewing, a sign of how aggressively major media companies are trying to reposition themselves as audiences move from traditional television to streaming.
The transaction would bring together Fox’s live programming portfolio, including Fox News and broadcasts of NFL, MLB and FIFA World Cup events, with Roku’s streaming devices, platform business and The Roku Channel. Roku reaches more than 100 million streaming households globally, according to figures cited by the companies.
Fox also owns Tubi, the free ad-supported streaming service it acquired in 2020. On a call with investors, Fox CEO Lachlan Murdoch said Fox and Roku plan to keep Tubi and The Roku Channel separate after the deal closes, describing the services as complementary and saying their audiences overlap by about one-third.
“This is a defining moment for Fox,” Murdoch said, calling the deal a continuation of the company’s strategy of focusing on live news and sports while expanding in streaming.
The acquisition would mark Fox’s biggest strategic move since it sold much of its entertainment business to Disney in a $71 billion deal. Since then, Fox has remained concentrated around its broadcast network, Fox News Channel, live sports rights and streaming efforts.
Fox said it plans to fund the cash portion of the Roku deal with cash on hand and new debt, and CNBC reported the company has obtained a $12 billion loan for the transaction. Fox said it expects about $400 million in run-rate cost synergies, with additional revenue upside.
The boards of both companies have approved the deal. If completed, existing Fox shareholders would own about 73% of the combined company, while Roku shareholders would own about 27%.
The agreement adds to a wave of media consolidation as companies compete for streaming audiences and advertising dollars. The next major milestone is the expected closing window in the first half of 2027, when Fox would formally add Roku’s platform to a portfolio built around live programming and ad-supported streaming.
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