Fox Corp. is making a dramatic move to expand its streaming footprint, unveiling with plans to buy Roku in a deal that values the streaming platform at $22 billion.

Fox announced Monday that it has agreed to acquire Roku for $160.00 per share in a combination of cash and Fox Class A common stock, valuing Roku at approximately $22 billion in enterprise value. The companies expect the deal to close in the first half of calendar year 2027.

The deal would combines Fox’s sports, news and entertainment content and the Tubi service with Roku’s connected TV platform, the Roku Channel, first-party data and direct relationship with more than 100 million global streaming households.

The companies said they are “committed to continuing to operate Roku as an open, partner-friendly platform” and to the continued “ubiquitous” distribution of Fox content.

According to the companies, on a pro-forma basis, the combined company will become the third-largest player in U.S. TV by share of viewing.

Lachlan Murdoch, executive chair and CEO of Fox, called it “a defining moment” for his company. In 2019, we reoriented the company around live news and sports. In 2020, we acquired Tubi and under our stewardship it has become one of the most successful businesses in streaming.

“This is a defining moment for Fox, and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade,” Murdoch said in a statement. The acquisition of Roku will bring together “the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it. This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile.”

He continued, “Roku pioneered streaming TV and scaled it into a leading [connected TV] platform. Together, we intend to lead its next chapter.”

Anthony Wood, Founder, chairman and CEO of Roku, said: “Over the past two decades, we’ve built Roku into the leading TV streaming platform, reaching more than 100 million households globally and reshaping how people discover and enjoy entertainment. I’m incredibly proud of what our team has built, and the combination with Fox is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers.”

According to Wood, Roku’s board of directors unanimously approved the sale to Fox Corp. “after concluding its strategic review process that this transaction offers a significant premium to Roku shareholders while also providing them with the opportunity to participate in the compelling future upside of the combined company. I couldn’t be more excited about what we’ll accomplish together.”