Fox’s Roku deal would put its channels closer to 100 million homes
Fox’s planned $22 billion Roku acquisition would give it a bigger role in what streaming viewers see first on their TV screens.
By Hana Yoshida · Markets Reporter
3 min read
Fox Corporation’s planned $22 billion purchase of Roku would give Lachlan Murdoch’s company control of a major streaming entry point used by about 100 million households, according to The Verge. The deal matters because Roku controls the software, advertising space and viewing data that shape how many people choose what to watch.
The Verge reported that Murdoch intends to add Roku to Fox by next year if regulators approve the acquisition. The combined company would become the third-largest U.S. television player by viewing share, and Fox would also gain Roku’s limited slate of original programming, according to the report.
Fox has said Roku would remain open and partner-friendly after the takeover, according to The Verge. The deal still requires regulatory approval.
Fox’s streaming push
The Verge tied the Roku bid to Fox’s broader effort to expand in streaming under Murdoch. Fox bought Tubi, a free ad-supported streaming service, in 2020 and launched a subscription service last year focused on news and live sports, according to the report.
Murdoch told investors that Fox and Roku would continue to operate as separate businesses, The Hollywood Reporter said in comments cited by The Verge. That means Roku’s own free ad-supported service, The Roku Channel, may not be merged into Tubi, according to The Verge’s analysis.
Roku founder, chairman and CEO Anthony Wood and Murdoch have both said Fox programming will get more prominent placement on Roku’s home screen after the acquisition, according to The Verge. Wood told investors that promoting Fox-owned and operated properties on Roku’s home screen is a key part of the companies’ plan to raise profits.
Murdoch also told investors that he expects Roku’s U.S. viewing to grow because Fox content will be available through the service, The Verge reported. The report said Roku’s broad catalog and access to rival services remain central to its appeal, limiting the likelihood that other programming would vanish from the platform.
Home screen changes draw attention
The Verge described Roku’s current interface as relatively simple, with top picks, access to other streaming apps and a large advertisement. During an investor call, Murdoch and Wood emphasized plans to make more money from Roku’s home screen by featuring more Fox content, according to the report.
The Verge’s analysis said that could make Fox Sports and Fox News more visible when users open Roku’s software or use Roku-powered devices. The report framed the acquisition as another example of media consolidation that could change what viewers are shown before they make a viewing choice.
The Verge also said Roku’s value to Fox lies less in its original shows than in its infrastructure and consumer viewing data. If the deal closes, Fox would own a widely used streaming platform at the same time it is trying to direct more viewers toward its news, sports and entertainment brands.
This story draws on original reporting from The Verge.