Fox agrees to buy Roku in $22 billion streaming push
Fox said it will pay $160 a share for Roku, combining its TV and streaming assets with Roku’s devices and ad-supported channel.
By Daniel Okafor · Business Editor
2 min read
Fox Corp. said Monday it has agreed to acquire Roku for about $22 billion, a deal that would give the media company a larger role in streaming hardware and ad-supported video. The agreement would combine Fox’s news, sports and streaming businesses with Roku’s device platform and The Roku Channel.
Fox said the transaction values Roku at $160 per share, according to CNBC. In premarket trading Monday, Fox shares were down about 13%, while Roku shares were up about 2%, CNBC reported.
The companies did not announce additional terms in the CNBC report. The deal adds to a period of consolidation in media, where traditional television companies have been trying to build stronger direct links to streaming audiences.
What the deal brings together
Fox’s current business includes the Fox broadcast network, Fox News Channel and sports programming, according to CNBC. The company also owns Tubi, its free, ad-supported streaming service.
Roku is best known for streaming devices that connect televisions to online video services. It also operates The Roku Channel, a free, ad-supported streaming service that CNBC described as similar to Tubi.
By pairing Roku with Tubi and Fox’s television brands, Fox would add a consumer device business and a major streaming distribution platform to its portfolio. CNBC reported that the combination would place Fox’s news and sports channels alongside Roku’s hardware and streaming channel operations.
Fox’s media portfolio
The agreement follows Fox’s last major reshaping about seven years ago, CNBC reported. In 2019, Fox sold many of its entertainment assets to Disney in a $71 billion transaction.
Since that sale, Fox has centered its business on television channels, including the Fox broadcast network and Fox News Channel, according to CNBC. The Fox network has been carrying the FIFA World Cup since last week, CNBC reported.
Fox bought Tubi in 2020 for $440 million, according to CNBC. Tubi served as Fox’s main streaming effort before the company announced Fox One, a direct-to-consumer streaming service that launched last year, CNBC reported.
The Roku agreement would expand that streaming strategy beyond Fox’s own services. It would give Fox ownership of a widely used streaming device maker and a free streaming channel business at a time when media companies are seeking more control over how audiences find and watch programming.
This story draws on original reporting from CNBC.