Fox has announced its acquisition of Roku for approximately $22 billion, marking a significant shift in the media landscape as it aims to create the third-largest television company in the U.S.
On Monday, Fox confirmed its acquisition of the streaming service Roku in a deal valued at about $22 billion, which is among the largest media acquisitions seen in recent years. This transaction signifies a strategic move within the television industry, highlighting two key trends: the ongoing popularity of live sports and news, alongside the rapid expansion of streaming services.
According to Fox, this merger will position the newly formed company as the third-largest television entity in the United States based on viewership. The acquisition will integrate Fox's news and sports channels along with its free ad-supported streaming service, Tubi, with Roku's connected TV platform, the technology that drives many smart TVs and streaming devices commonly used in households.
Fox has stated that this combination will enhance its reach across both traditional television and streaming sectors, a convergence that is increasingly deemed crucial as audiences divide their time between live broadcasts and on-demand viewing options.
The acquisition provides Fox with direct access to Roku’s user base of 100 million households, which the company believes will enable it to target advertisements more effectively and reduce reliance on traditional distribution methods. Furthermore, Fox asserts that this move strengthens its presence in the connected TV market, a rapidly growing sector for streaming advertisements and subscriptions, often referred to as 'CTV.'
Lachlan Murdoch, CEO of Fox, described the acquisition as a 'defining' moment for the company. He emphasized that, 'This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile.' He acknowledged Roku's role in pioneering streaming television and expressed the intent to lead the next phase of its development.
This acquisition is part of a broader trend of consolidation in the media industry, as traditional broadcasters strive to enhance their scale in the streaming market. Fox previously acquired Tubi for $440 million in 2020 during a highly competitive phase in the live streaming arena. In the previous year, the company launched Fox One, a direct-to-consumer streaming service.
Anthony Wood, founder and CEO of Roku, expressed enthusiasm about the merger, stating, 'I’m incredibly proud of what our team has built, and the combination with Fox is an extraordinary opportunity to accelerate our vision, scale faster, and innovate more aggressively for viewers, partners, and advertisers.' He conveyed excitement about the potential accomplishments that could arise from this partnership.
The acquisition has received approval from the boards of directors of both companies and is anticipated to finalize in the first half of 2027. To facilitate the purchase, Fox has secured a loan amounting to $12 billion.
