Fox’s Roku deal would give it a bigger role on connected TVs
Fox’s planned $22 billion Roku acquisition would add a major streaming platform, ad business and viewing data to its media portfolio.
By Maya Lindqvist · Senior Technology Correspondent
3 min read
Fox’s planned $22 billion purchase of Roku would put the company behind one of the most widely used gateways for streaming video. The deal matters because Roku is not just a device maker; it runs the software, ads and recommendations that shape what many viewers see when they turn on a connected TV.
Fox announced the acquisition Monday. Roku’s platform reaches more than 100 million households worldwide, according to The Verge, and serves as an entry point for services including Netflix, Disney Plus and Hulu.
Fox CEO Lachlan Murdoch told investors the company intends to keep Fox and Roku operating separately. He said Fox sees a chance to expand its audience by pairing Roku’s technology and platform with Fox Sports, news programming, local stations and programming already available through The Roku Channel.
Roku founder and CEO Anthony Wood, who is expected to have a role in the combined company after the transaction closes in 2027, told investors that Fox programming could appear on Roku’s home screen. Wood said Roku already personalizes many home-screen placements based on what it expects a customer is likely to watch or buy.
Wood also told investors that having more revenue-generating properties to promote could increase the money Roku earns from its home screen. Roku’s current interface includes a large ad placement and rows of recommended shows and movies, according to The Verge.
Advertising and viewing data are central to the deal
Roku sells streaming devices and TVs, but its business depends heavily on platform advertising and fees from subscriptions sold through its interface. Roku said in April that it made $613 million from advertising and $519 million from subscriptions in the quarter, according to figures cited by The Verge.
Dan Rayburn, a streaming media analyst, told The Verge that Fox would gain broad distribution from the purchase, as well as insight into viewing behavior across Roku’s platform. That data could help Fox decide how to promote its own programming and streaming services.
The transaction would also bring together two free, ad-supported streaming services that compete today: Fox’s Tubi and The Roku Channel. Murdoch told investors that about one-third of Tubi viewers also watch The Roku Channel, and said combining the businesses would effectively triple the reach of the combined service.
Murdoch said it was too soon to make final decisions, but Fox currently expects to keep Tubi and The Roku Channel as separate services because they serve viewers in different ways.
Roku’s subscription push could fit Fox’s content plans
Roku has also moved into paid streaming. It bought the $6.99-a-month Frndly TV service and later introduced Howdy, a $2.99-a-month ad-free subscription, according to The Verge.
Fox has launched its own Fox One streaming service and has a Hulu deal for shows including Family Guy and The Masked Singer, according to The Verge. Rayburn told The Verge that Roku could look for more content opportunities with Fox’s backing.
The deal is also drawing scrutiny from media and digital rights observers. Jeff Chester, executive director of the Center for Digital Democracy, told The Verge that recent media consolidation has political implications and said the Fox-Roku deal should be viewed in that context.
Rayburn told The Verge he does not expect significant regulatory resistance in the United States and questioned whether the European Union would examine the deal closely, given Roku and Fox’s smaller presence there. If regulators do not intervene, the companies expect the acquisition to close next year.
This story draws on original reporting from The Verge.