Fox Corporation announced on June 15 that it will acquire the streaming media and smart TV platform Roku in a cash-and-stock deal worth $22 billion, with an acquisition price of $160 per share. The transaction is expected to be completed in the first half of 2027. After the two companies merge, they are expected to save $400 million in costs and become “the third-largest company by US television viewership share,” with total market share exceeding 5%.
Fox Corporation’s Roku acquisition deal terms
Based on the official statements from both companies:
Acquisition value: $22 billion (cash and stock)
Acquisition price per share: $160 (about a 20% premium to Thursday’s closing price)
Expected completion time: first half of 2027
Cost savings confirmed: $400 million
Roku CEO arrangement: Founder and CEO Anthony Wood will continue in his role and join Fox’s board of directors
Fox CEO Lachlan Murdoch said: “Today, we take the next step—bringing together the most valuable live content portfolio in the video consumer space and the top streaming media platforms that US audiences use to watch that content.”
Post-merger confirmed competitive position and advertising strategy
In a joint statement, the two companies confirmed that after the merger they will become “the third-largest company by US television viewership share,” with market share above 5% (per Nielsen metrics, YouTube is first and Netflix is second).
Key business integration of this merger:
· Tubi (Fox’s free, ad-supported streaming service, acquired in 2020 for $440 million) and The Roku Channel (Roku’s own free, ad-supported streaming service) will be integrated
· Fox’s sports (NFL, MLB, the Big Ten), news (Fox News, Fox Business), and entertainment content will be combined with the Roku platform and its 100 million user base
Forrester vice president Mike Proulx said: “The key to this deal is ad revenue—an area all mainstream streaming media platforms are competing for.”
Media integration backdrop: Paramount–Warner Bros. deal also confirmed
Just days before Fox’s acquisition news was released, the US Department of Justice approved Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery. The merger will place HBO Max and Paramount+ under one roof, while integrating CBS News and CNN.
Frequently asked questions
Why did Fox buy Roku after launching the Fox One streaming service just last year?
Fox One launched in 2025 and competes with Roku. But after the acquisition closes, Murdoch confirmed that Roku’s strategy of staying open and partner-friendly will remain unchanged, including continuing to host competitors’ apps. For Fox, acquiring Roku is to gain the scale of an existing platform (100 million users, 28% market share), not simply to extend Fox One.
Why did Fox’s stock price fall sharply after the deal was announced?
According to reports, Fox’s stock fell nearly 15% on Monday. eMarketer analyst Benes said the market still had doubts about the “effectiveness of combining a streaming media company that continuously innovates in the digital space with a media group rooted in traditional assets,” and the $22 billion high acquisition premium also raised valuation concerns among some investors.
Will this merger require regulatory approval?
According to reports, the transaction is expected to close in the first half of 2027, and is currently awaiting regulatory approval. In a joint statement, Fox and Roku said the deal is expected to close in the first half of 2027.
