Fox to buy Roku in $22 billion connected TV advertising push
The deal would combine Fox’s TV networks and Tubi with Roku’s streaming platform, devices and ad business, pending approvals.
By James Whitfield · Staff Writer
3 min read
Fox Corporation has agreed to acquire Roku Inc. in a cash-and-stock deal valuing the streaming platform company at about $22 billion, the companies said. The agreement would give Fox a larger role in connected TV, including Roku’s smart TV software, devices, advertising business and free streaming channel.
Under the terms announced by the companies, Fox will pay $160 per Roku share. The transaction still needs regulatory clearance and approval from shareholders of both companies, and Fox and Roku said they expect it to close in the first half of 2027.
The combination would bring Fox’s broadcast and cable assets, including Fox, Fox News, Fox Business and FS1, together with its streaming service Tubi. Roku would add The Roku Channel, its own free ad-supported streaming television service, along with Roku OS, streaming sticks and smart TVs.
Roku said its platform reaches 100 million households. Its hardware business has not been the company’s main profit engine: Roku reported a $19.1 million loss for hardware in the quarter ended March 31, 2026, while its advertising and subscriptions unit produced $584.1 million in gross profit, including $371 million in advertising revenue.
Roku became profitable during the COVID-19 pandemic in 2021, according to the company’s history cited in the announcement, but did not return to annual profitability until 2025. Roku CEO Anthony Wood told investors the deal would let Roku “execute on our strategy faster than we would otherwise by ourselves,” while adding that the company was already performing well.
The companies said they plan to keep Roku open to outside services and partners while continuing broad distribution of Fox programming. They also said the merged company would rank third in U.S. television by share of viewing on a pro forma basis.
That ranking appears to track Nielsen’s March data for total TV use by media company. Nielsen listed YouTube first at 13.2 percent, The Walt Disney Company second at 10.5 percent and NBCUniversal/Versant third at 8.4 percent. Fox ranked fourth with 7.2 percent, while The Roku Channel ranked ninth with 3 percent.
For Fox, Roku would add a direct route into connected TV advertising and viewer data through Roku OS and The Roku Channel. Fox CEO Lachlan Murdoch told investors that advertisers are looking for large audiences, stronger digital targeting and more consistent measurement across platforms, and said those trends have helped drive growth in connected TV.
If the transaction closes, Fox shareholders are expected to own about 73 percent of the combined company, while Roku shareholders are expected to own about 27 percent, the companies said. Fox would take on $8 million in debt to fund the Roku purchase, and the companies expect to cut combined expenses by $400 million.
Wood would join Fox’s board and have an ongoing role at the combined company, according to the announcement. The companies did not provide further details about that position.
The agreement adds to a wave of consolidation in streaming, where companies have struggled to build and maintain profitable services while competing with cable and each other on price and availability. Recent and proposed deals cited in the sector include Paramount buying HBO Max and the rest of Warner Bros. Discovery, as well as Disney buying Hulu.
This story draws on original reporting from Ars Technica.