Fox Corp. announced Monday(6/15/26) that it plans to buy Roku in a transaction valued at roughly $22 billion, including debt, giving the media company a much larger role in the streaming business. If the deal is completed, the companies said the combined operation would rank as the third-largest television company in the United States by share of viewing.
The announcement came only a few days after reports said Roku was considering different strategic options, including a possible sale. Before Fox emerged as the buyer, media reports linked several other companies to Roku, including Netflix, Amazon, Comcast and Disney.
Fox said Roku will continue to operate as an open platform that works with a wide variety of streaming services. Company leaders also said people who already use Roku devices should not expect immediate changes after the announcement.
The acquisition would add Roku’s streaming platform, The Roku Channel and its first-party data to Fox’s collection of businesses. Fox already owns Tubi, the free ad-supported streaming service it purchased in 2020. Executives said Tubi and The Roku Channel are expected to remain separate because each attracts viewers in different ways. According to Fox, the two services share only about one-third of their audiences.
Chief Executive Officer Lachlan Murdoch said the purchase fits with Fox’s strategy of focusing on live news, sports and streaming. Speaking to investors, he said bringing Roku into the company creates more opportunities in advertising, subscriptions and digital viewing. Murdoch also said the combined business would be in a stronger position for the next decade than either company would have been on its own.
Roku Chief Executive Officer Anthony Wood also described the deal as an opportunity to expand the company’s vision and continue developing its platform for viewers, advertisers and business partners. After the acquisition is completed, Wood is expected to remain involved with the company and join Fox’s board of directors.
Wood has worked in streaming since the early 2000s, when he was part of Netflix during its shift away from DVD rentals. Roku later became an independent company and introduced its first streaming player in 2008. Wood has said his original interest in the technology came from wanting an easier way to record and watch his favorite television show, “Star Trek.”
Industry analysts pointed to advertising as one of the biggest reasons behind the purchase. Mike Proulx, research director at Forrester, said streaming companies are placing more attention on advertising revenue, making ownership of both content and a viewing platform increasingly valuable.
The proposed purchase values Roku at $160 per share. Shareholders would receive a combination of cash and Fox stock rather than a cash-only payment. For every Roku share, the offer includes $96 along with 0.9693 shares of Fox Class A stock. Fox also said it expects the combined company to reduce annual operating costs by about $400 million, while leaving room for additional revenue growth.
The transaction still requires approval from shareholders and government regulators before it can move ahead. If those approvals are received, people who currently own Fox stock would hold a little under three-quarters of the combined company, with Roku investors owning the rest. Fox and Roku expect the acquisition to be completed during the first half of 2027.
Investors reacted soon after the announcement. Fox shares dropped sharply during Monday’s trading session, while Roku shares slipped nearly 2%. That followed a jump of about 20% in Roku’s stock on Friday after reports first suggested the company might be sold.
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