Fox to Buy Roku in $22 Billion Deal

Fox has confirmed that it is acquiring streaming company Roku in a deal valued at around $22 billion. This move is aimed at strengthening Fox's position in the streaming market and expanding its reach in the connected TV space.

Deal to Create Third-Largest TV Company in the US

The deal combines Fox's news and sports channels with its free ad-supported streaming service Tubi, and Roku's connected TV platform. This combination will enable Fox to target ads more effectively and reduce its reliance on traditional delivery methods. The acquisition will also give Fox access to Roku's user base of 100 million households.

The deal is expected to close in the first half of 2027, and Fox has obtained a $12 billion loan to fund the acquisition.

Fox to Gain Wider Entry into Connected TV Market

Fox says the acquisition will give it a wider entry into the high-growth segment of connected TV, particularly ads and streaming subscriptions. The company plans to use Roku's platform to deliver its content to a wider audience and increase its revenue from advertising and subscription services.

• The deal has been approved by the boards of directors of both companies.
• Fox acquired Tubi for $440 million in 2020, and last year launched its direct-to-consumer streaming service, Fox One.
• Roku founder and CEO Anthony Wood said the combination with Fox is an extraordinary opportunity to accelerate the company's vision and innovate more aggressively for viewers, partners, and advertisers.

Fox CEO Lachlan Murdoch called the acquisition a "defining" moment for the company, saying it will transform the scope of the company into high-growth verticals and yield a step change in its overall growth profile. The deal is seen as a strategic move by Fox to strengthen its position in the streaming market and expand its reach in the connected TV space.