Fox Corp. will acquire streaming company Roku in a deal valued at about $22 billion, including debt, the companies announced Monday.
Roku will continue operating as an open, partner-friendly platform with no immediate changes for customers, the companies said. The combined entity would become the third-largest player in U.S. television by share of viewing.
The transaction gives Fox access to more than 100 million global households, the Roku channel and first-party data. Fox oversees sports, news and entertainment networks plus Tubi, which it acquired in 2020.
Roku founder Anthony Wood initially worked at Netflix in the early 2000s during its shift from DVD rentals to streaming. Netflix spun off Roku, which released its first set-top box in 2008. Wood has said his motivation stemmed from a desire to record and play his favorite show, “Star Trek.”
Fox Corp. CEO Lachlan Murdoch said combining the businesses will pair Fox’s live news and sports content with Roku’s large streaming audience. The deal also expands Fox’s exposure to advertising and streaming subscriptions.
Wood said the combination with Fox represents an extraordinary opportunity to accelerate the company’s vision, scale faster and innovate more aggressively for viewers, partners and advertisers. Wood will have an ongoing role and join the Fox board of directors after the deal closes.
Murdoch said during a conference call that the combined company will be better positioned for the next decade of video than either would have been alone. “We are confident this is the right transaction, at the right moment, for all the right reasons,” he said.
Under the terms, Fox will pay $96 in cash and 0.9693 shares of its Class A common stock for each Roku Class A and Class B share. The deal values Roku at $160 per share. Existing Fox shareholders are expected to own about 73% of the combined company, with Roku shareholders owning approximately 27%.
The transaction is expected to close in the first half of next year, pending approvals from Fox and Roku shareholders and regulators. Fox’s stock declined before the market open Monday, while Roku shares rose slightly.
For Southern Maryland residents who use Roku devices or the Roku channel to watch local news, sports or national programming, the deal is not expected to bring immediate changes to service or content access. Over time, the combination could influence advertising options and the availability of Fox-owned sports and news content on the platform.
Local businesses that advertise through streaming or linear TV may eventually see new opportunities or shifts in how ads are placed across the combined Fox and Roku ecosystem. Residents who follow sports or news on these platforms can continue using their current devices and apps as before.
