Fox steps up streaming ambitions with $22 billion Roku acquisition

• Fox has entered a deal to acquire Roku.
• The $160-a-share deal gives Roku an enterprise value of $22 billion.
• Fox said it expects the deal to close in the first half of 2027.

Fox is making its biggest bet yet on streaming TV.

Fox on Monday announced it had entered an agreement to acquire Roku for a mix of cash and stock. The $160-per-share deal gives Roku an enterprise value of around $22 billion, Fox said.

The deal combines Fox’s sports, news, and entertainment content with Roku’s connected-TV devices and digital ads business.

Fox CEO Lachlan Murdoch said in a statement that the deal marks “a defining moment for the company.”

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

Fox’s shares were down by about 10% in premarket trading. Trading of Roku’s shares was halted.

In acquiring Roku, Fox would get access to more than 100 million households worldwide that stream TV across a variety of apps using Roku’s platform. Fox said it would become the third-largest player in US TV by share of viewing once the deal completes, which it expects in the first half of 2027.

In 2020, Fox acquired the ad-supported streaming service Tubi for $440 million. Last year, it launched Fox One, its own subscription livestreaming service, on which it is currently broadcasting the World Cup, as well as its news and entertainment programming.

Fox said it was committed to continuing to operate Roku as “an open partner-friendly platform.”

Lightshed Partners media analyst Rich Greenfield said in an interview on CNBC on Monday that Fox was acquiring a “TV gatekeeper.”

“Whether it’s Netflix, whether it’s Paramount+, whether it’s Prime Video, anyone who wants to have a streaming service has to play ball with Roku,” Greenfield said.