Streaming Giant Roku to Join Fox in $22 Billion Acquisition

Fox Corporation is acquiring streaming platform Roku in a $22 billion deal, the companies said on June 15.

The cash‑and‑stock deal, approved by the board of directors, gives Fox access to Roku’s global footprint. This includes Roku’s devices and services, which reach 100 million households worldwide and generate about 145 billion hours of engagement per year.

Fox will buy Roku for $160 a share, representing a 20 percent premium from the June 12 closing price.

The combined company will become the third-largest player in U.S. television by share of viewing, controlling more than 5 percent of the market.

In recent years, the news and sports programming giant has been steadily pushing deeper into streaming, most notably with the launch of Fox One this past summer. But the company has trailed other major names in the industry, including Amazon, Disney+, Netflix, and YouTube.

The deal—expected to produce $400 million in savings—might have been more urgent as Paramount–Skydance closes its takeover of the Warner Bros. Discovery entertainment empire. In addition to the popular Paramount+ streaming service, the company will also absorb Warner Bros.’ Max.

Fox CEO and Chairman Lachlan Murdoch described the purchase as a “defining moment” for the company that will continue the “deliberate and focused strategy we have been executing for nearly a decade.”

“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,” Lachlan said in a statement.

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

Fox’s purchase of Roku is expected to close in the first half of calendar year 2027. It will fund the cash portion through new debt, cash on hand, and bridge financing from Morgan Stanley.

Fox has been a leader in cable television—whether due to Fox News or its sports lineup—but has struggled to adapt as consumers transition from traditional TV to streaming services.

The Roku acquisition marks the first major purchase for Fox since CEO and Chairman Lachlan Murdoch assumed full control from his father, Rupert Murdoch.

Roku founder and CEO Anthony Wood will maintain an “ongoing role” at the company and will join Fox’s board of directors. Shareholders will own about 73 percent of the combined company after the deal is completed, with Roku investors holding the remainder.

“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,” Wood said.

This comes six years after Fox bought the ad-supported free streaming service Tubi, a move financed by the sale of its minority stake in Roku. Additionally, it has been about seven years since Fox reduced its entertainment assets in a $71 billion move with Disney.

Shares of Fox declined 14 percent following the news, sliding below $51. Roku’s stock dropped 1 percent to around $142—below the offer price.

Mergers and Acquisitions

The Fox-Roku deal adds to this year’s volume of merger and acquisition activity.

EY-Parthenon forecasts that mergers and acquisitions valued at more than $100 million will grow 8 percent this year, driven by artificial intelligence (AI).

“Private equity investors are being much more careful about where they put their money right now,” Mitch Berlin, EY-Parthenon Americas vice chair at Ernst & Young, said in a news release.

“When we think about private equity activity for the remainder of the year, we expect resilience to be driven by a record-breaking rotation into asset-heavy sectors, such as energy and infrastructure, where tangible cash flows offer a vital hedge in a higher-for-longer rate environment.”

There has been a flood of corporate deals over the past 12 months, including Eli Lilly’s purchase of Ajax Therapeutics, GSK’s acquisition of Nuvalent, and Kimberly-Clark’s purchase of Tylenol parent Kenvue.