Fox Corp is buying Roku in a cash-and-stock deal valued at about $22 billion, in a bet that combining its sports and news programming with a major TV streaming platform will strengthen its position as audiences continue shifting online, News.Az reports, citing CNBC.
The deal, announced on Monday, gives the cable TV-reliant Fox direct access to Roku’s large installed base of more than 100 million streaming households, enabling the company to better sell targeted advertising and reduce its reliance on traditional distribution channels.
Fox will acquire Roku at $160 per share, which represents a premium of 11.4% compared with Roku’s last closing price.
Following the announcement, Fox shares were down 8% in premarket trading, while Roku’s shares were halted.
Roku is among the early companies to bring streaming platforms such as Netflix and YouTube to television through connected devices and smart TVs, helping shape the modern streaming ecosystem.
Its business is primarily driven by advertising and subscription revenue from streaming apps on its platform. Advertising is the largest segment, generating $613 million in the first quarter, up 27% year-on-year.
Fox already operates Tubi, while Roku runs The Roku Channel, and a combination of the two platforms could create a clear leader in streaming, with a meaningful share of total TV viewing, JP Morgan analysts said on Sunday.
Reuters reported on Friday that Roku is exploring its strategic options, including a full sale of the firm, amid interest from companies seeking access to its vast streaming audience and advertising platform.
The combined company will become the third-largest player in U.S. television by share of viewing, the companies said.
The deal is expected to close in the first half of calendar year 2027.
Upon closing, existing Fox shareholders are expected to own about 73% of the combined company and Roku shareholders about 27%.
Fox already operates Tubi, while Roku runs The Roku Channel, and a combination of the two platforms could create a clear leader in streaming, with a meaningful share of total TV viewing, JP Morgan analysts said on Sunday.
Reuters reported on Friday that Roku is exploring its strategic options, including a full sale of the firm, amid interest from companies seeking access to its vast streaming audience and advertising platform.
The combined company will become the third-largest player in U.S. television by share of viewing, the companies said.
The deal is expected to close in the first half of calendar year 2027.
Upon closing, existing Fox shareholders are expected to own about 73% of the combined company and Roku shareholders about 27%.
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