Fox Corp is set to acquire Roku in a cash-and-stock deal worth US$22 billion. The move gives Fox access to Roku’s platform, which reaches over 100 million households, strengthening its streaming presence as more viewers shift online.
This is Fox’s first big move under new CEO Lachlan Murdoch, who called the deal a “defining moment” for the company. Roku, known for its streaming devices and smart TVs, makes most of its money from ads and subscriptions. In Q1 2026, Roku pulled in US$613 million in ad revenue, up 27% year-on-year.
According to reports, Roku shareholders will get US$96 in cash plus 0.97 Fox Class A shares per Roku share, valuing the offer at US$160 per share. That’s a 33.7% premium, but Fox shares dropped nearly 17% on dilution concerns. Roku’s stock also slipped 2.5%, trading below the offer price.
Once completed, the combined company will be the third-largest US TV player by viewership, giving Fox more control over content discovery, data, and monetization. Analysts say Fox could blend its live sports and news with Roku’s platform reach, opening up new ad opportunities.
Fox shareholders will own about 73% of the merged company, while Roku investors will hold the rest. The deal is expected to close in the first half of 2027, with projected annual savings of US$400 million.
Also Read: Netflix to roll out cheaper ad-supported plan to PH and 14 other countries in 2027
The consolidation of streaming is heating up. Other big deals include Paramount Skydance’s planned US$110 billion takeover of Warner Bros Discovery.
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