Fox Corp. has announced an agreement to acquire Roku in a deal that values the connected TV company at $22 billion. The transaction will involve a mix of on-hand cash and Fox Class A stock.

Both companies suggest the acquisition will be finalized in 2027, depending on regulatory approvals. If the merger goes through, Fox shareholders are “expected to own approximately 73% of the combined company and Roku shareholders approximately 27%.”

The acquisition marks an aggressive shift in Fox’s corporate strategy, which has long-focused on broadcast TV. Fox CEO Lachlan K. Murdoch is calling it a “defining moment” for the company, which seeks to operate Roku as an "open, partner-friendly platform." Roku Founder, Chairman and CEO Anthony Wood will reportedly join the Fox Board of Directors once the deal has closed.

A press release from Fox offers more insight into what the acquisition means for the company's future: “Together, Fox and Roku will create a scaled next-generation media and technology company positioned at the intersection of two of the most important forces reshaping video consumption: the enduring primacy of live sports and news, and the continued rise of streaming.”

Roku provides a leading operating system for smart TVs while also producing its own line of streaming devices. The company recently reported reaching over 100 million streaming households. Fox Corp. highlights the value of Roku’s audience data, platform technology, and advertising opportunities.

This is not necessarily Fox's first move into the streaming space. The entertainment company acquired Tubi, a particularly popular free streaming service, for $440 million back in 2020. Tubi has continued to grow in reach since its acquisition, and Fox owning both Tubi and Roku would give them direct control over the vast majority of the free streaming space.

Fox also launched its own direct-to-consumer streaming service, FOX One, just last year. The new service offers unified access to Fox’s live networks without needing a separate cable subscription.

There's plenty more action currently happening in the media landscape. The Justice Department recently approved Paramount’s attempted acquisition of Warner Bros., which, if finalized, will mark one of the biggest mergers in media history.

Photographer: Michael Nagle/Bloomberg via Getty Images.

Blythe (she/her) is an Audience Development Coordinator at IGN who, when she isn't following streaming news, spends way too much time in character customization screens and tracking down collectibles.