Fox to acquire Roku in $22 billion streaming deal
Fox and Roku say the combination would create the third-largest U.S. television company by viewing share, pending regulatory approval.
By Hana Yoshida · Markets Reporter
2 min read
Fox has agreed to acquire Roku in a transaction valuing the streaming company at $22 billion, Fox and Roku said in a joint statement. The deal would put Fox’s television networks and Tubi alongside Roku’s streaming hardware, smart TV software and The Roku Channel, giving the combined company a larger role in how U.S. viewers find and watch video.
Fox and Roku said the combined business would rank as the third-largest company in the U.S. television market by viewing share. The companies did not say the deal had closed; they said it remains subject to regulatory approval.
The transaction would bring together two different parts of the TV business. Fox contributes its TV networks and Tubi, the free ad-supported streaming service it already owns. Roku brings its streaming devices, its operating software for smart TVs and its own ad-supported streaming outlet, The Roku Channel, according to the companies.
Fox and Roku said they plan to keep Roku available to other content providers rather than turn it into a closed system. They also said Fox’s programming would continue to be distributed broadly, a point aimed at concerns that ownership of a major TV platform could change how Fox content is offered.
Fox chief executive Lachlan Murdoch described the acquisition as a major step in the company’s strategy. In the companies’ statement, Murdoch said the deal joins Fox’s live content portfolio with the streaming platform “through which America watches it.”
Roku founder and chief executive Anthony Wood said in the statement that Roku has reached more than 100 million households worldwide over two decades. Wood said the combination with Fox would give Roku a chance to grow faster and build for viewers, partners and advertisers.
Wood will remain with Roku after the deal and will join Fox’s board of directors, the companies said. Fox and Roku did not provide additional details in the statement about changes to Roku’s management structure beyond Wood’s role.
The acquisition would mark a major expansion of Fox’s position in streaming distribution. Fox already owns Tubi, while Roku has built a business around the software and devices many viewers use to reach streaming apps. Together, Fox and Roku said, those assets would form a larger television company measured by viewing share in the United States.
The deal now moves to regulators for review. Until approvals are secured, Roku and Fox remain separate companies, according to the companies’ announcement.
This story draws on original reporting from The Verge.