Fox Corp. has announced its agreement to acquire Roku for approximately $22 billion, amid ongoing media consolidation and evolving industry challenges. The transaction involves a purchase price of $160 per share, to be financed through a mix of available cash and newly secured debt, including a $12 billion loan.
The acquisition brings together Fox’s experienced portfolio of news and sports networks, alongside its free ad-supported streaming service, Tubi, and Roku’s popular streaming devices and The Roku Channel. Fox CEO Lachlan Murdoch characterized the deal as a “defining moment” for Fox, marking its first significant acquisition since divesting entertainment assets to Disney in a $71 billion agreement seven years ago. Fox’s renewed focus on live news and sports aims to boost advertising revenue, especially as the landscape for media companies shifts toward streaming platforms.
Interestingly, Murdoch highlighted the minimal content overlap between Tubi and The Roku Channel, which is seen as a beneficial pairing for both services. Roku CEO Anthony Wood emphasized the strength of Roku’s platform, which services over 100 million households worldwide and boasts 145 billion annual hours of viewership.
Post-acquisition projections suggest Fox anticipates around $400 million in cost synergies, with Fox shareholders controlling approximately 73% of the new entity and Roku shareholders holding about 27%. The boards of both companies have endorsed the deal, with completion expected by mid-2027.
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