Fox is planning to acquire Roku in a $22 billion deal, a move that the companies say would establish the third-largest TV viewing share in the United States. The offer values Roku at $160 per share, composed of cash and stock, and signals Fox’s strategy to blend its live news and sports with streaming to capture audiences shifting online.
Chief executive Lachlan Murdoch described the agreement as a defining moment and a natural extension of a strategy the group has pursued for nearly a decade. He noted that in 2019 Fox reoriented around live news and sports, and that in 2020 it acquired Tubi, which he said has become a successful streaming business under Fox’s stewardship. Murdoch added that the combined entity would bring together Fox’s live content with Roku’s platform, creating a potent pairing in the streaming era.
Roku is the largest streaming platform for US smart TVs, running on more than a quarter of internet-connected devices, according to research firm Park Associates. Globally, more than 100 million households stream via Roku, which also operates the Roku Channel for films, TV shows and live news. The deal envisions integrating Roku Channel with Fox’s Tubi service, positioning the merged group to challenge Netflix and Amazon in the US streaming market.
The relationship between streaming growth and advertising is a key backdrop. Madison and Wall forecast that streaming advertising could reach about $20 billion by 2029, a level not far from traditional TV advertising, underscoring why Fox and Roku see scale as a driver of ad revenue. The deal’s proponents argue that the new scale should help the combined company contend for advertiser dollars as viewing habits continue to migrate online.
The collaboration is framed around continuing to offer live sports and news while expanding streaming access, with executives stressing the enduring importance of live content amid a broader streaming transition.
