If you own a Roku device, the company behind it just changed hands in a very big way. Fox Corp. has announced a $22 billion deal to acquire Roku, the streaming platform that runs on more than a quarter of all internet-connected TVs in the US. This is one of the most significant media deals in years, and it affects anyone who streams content through a Roku device or Roku TV. Here is everything you need to know about what happened, what it means, and what comes next.
Fox Buys Roku: The Overview of the Deal
| Detail | Info |
| Acquirer | Fox Corp. |
| Company Acquired | Roku |
| Deal Value | $22 billion |
| Price Per Share | $160 (cash and stock) |
| Cash Per Share | $96 in cash |
| Stock Component | 0.9693 Fox Class A shares per Roku share |
| Fox Financing | $12 billion loan plus cash on hand |
| Deal Approval | Boards of both companies approved unanimously |
| Expected Close | First half of 2027 |
What Is Roku?
Roku is the biggest smart TV streaming platform in the United States, with a 28 percent market share according to Parks Associates. The platform reaches more than 100 million households globally and logged 145 billion hours of engagement annually. Its main rivals include Amazon Fire TV, Google TV, Apple TV, and Samsung’s Tizen. For many people, Roku is simply the interface they see every time they turn on their television.
Fox Corp., on the other hand, owns the Fox broadcast network, Fox News, Fox Business, sports rights including the NFL, MLB, and Big Ten college sports, as well as the free ad-supported streaming platform Tubi and the subscription streaming service Fox One, which launched last year.
By combining these two companies, Fox gains direct access to the home screens of over 100 million households worldwide.
Why Did Fox Buy Roku?
Fox CEO Lachlan Murdoch called the deal a “defining moment” for the company, describing it as the next step in a decade-long strategy built around live news, sports, and streaming.
The move makes particular sense when you look at how the streaming industry is shifting. Large platforms including Netflix, Disney+, and Hulu have all moved away from purely paid subscription models and now offer ad-supported tiers. Fox has been betting on free, ad-supported streaming for years, and this acquisition puts that bet into overdrive.
Owning Roku gives Fox several major advantages:
- Advertising reach: Roku’s platform generates revenue through advertising and commissions on streaming subscriptions, and Fox can now sell ads across a far larger audience.
- Direct distribution: Fox can promote its own services, including Tubi and Fox One, directly on Roku’s home screen without going through a third party.
- Subscription revenue: Roku currently has billing relationships with more than 20 million customers, giving Fox access to a significant subscription infrastructure.
- Data: Roku’s platform collects detailed viewing data, which gives advertisers highly targeted options, a major draw for the ad-supported streaming model Fox is building around.
What Happens to Tubi and the Roku Channel?
Both Fox’s Tubi and Roku’s own streaming service, the Roku Channel, will remain separate after the deal closes, according to Murdoch. He described the two as “incredibly complementary services” that see only about a third of audience overlap, meaning they largely serve different viewers rather than competing with each other.
Who Owns What After the Deal Closes?
After the acquisition completes, existing Fox shareholders will own approximately 73 percent of the combined company, while Roku shareholders will hold around 27 percent. Fox expects to generate approximately $400 million in annual cost savings as a result of the merger.
Roku founder and CEO Anthony Wood will continue in a role at the company and will take a seat on Fox’s board. Wood personally stands to make as much as $3 billion from the sale. Roku’s board initiated the sale process earlier this year with the help of investment bank Qatalyst Partners.
How Does This Change the Streaming Landscape?
The combined company would become the third largest player in US TV viewing, sitting behind YouTube and Disney but ahead of Netflix, based on Nielsen data. That is a significant jump in competitive positioning for Fox, which has historically been more of a content company than a distribution platform.
The deal also arrives just days after the US Department of Justice approved Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery, a move that put HBO Max, Paramount+, two Hollywood studios, CBS News, and CNN under one roof. The Fox-Roku deal is another major chapter in an ongoing wave of media consolidation that is reshaping how content gets made, distributed, and monetised.
What Does This Mean for Roku Users?
Fox and Roku have not announced any immediate changes to the Roku platform or user experience. Murdoch confirmed that Fox intends to maintain its existing partnerships with distributors including YouTube TV and Comcast. However, with a major content company now owning the platform, the long-term direction of Roku’s home screen and ad experience will likely shift to prioritise Fox’s own services over time.
https://www.youtube.com/watch?v=fXxKLlioRYoThe deal still requires regulatory approval and is not expected to formally close until the first half of 2027, so the Roku experience you are used to remains unchanged for now.
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