Fox jumps to streaming market, acquires Roku in $22 billion deal that will combine both companies

Fox Corporation announced Monday it has acquired the streaming company Roku for $22 billion, in a significant move that merges Fox's extensive content portfolio with Roku's leading connected TV platform. The deal, structured as a combination of cash and FOX Class A common stock, aims to create a powerful entity at the intersection of live sports, news, and the rapidly expanding streaming market.

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

According to Fox, the transaction brings together its premier sports, news, and entertainment content, along with its Tubi streaming service, with Roku's established connected TV platform, The Roku Channel, its first-party data, and its direct relationship with over 100 million global streaming households. Fox Corporation CEO Lachlan K. Murdoch highlighted the strategic importance of the acquisition, stating, "Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it."

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In 2020, we acquired Tubi, and under our stewardship, it has become one of the most successful businesses in streaming. Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it.

Roku founder and CEO Anthony Wood noted his company's growth over the past two decades, building it into the leading TV streaming platform that has reshaped entertainment discovery for over 100 million households worldwide. The newly combined company will see Fox Corporation shareholders owning 73%, with Roku shareholders holding the remaining 27%. Fox anticipates generating approximately $400 million in run-rate cost synergies, alongside additional revenue opportunities, as part of its digital strategy.

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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.

Murdoch emphasized that the acquisition will transform the company's scope into high-growth verticals and significantly enhance its overall growth profile. He added that the deal is being executed from a position of financial strength, maintaining an investment-grade balance sheet while continuing shareholder returns through buybacks and dividends. Wood expressed that the combination with Fox presents an extraordinary opportunity to accelerate Roku's vision, scale faster, and innovate more aggressively for viewers, partners, and advertisers.

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This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile.