As advertising dollars and consumer attention continue to exit traditional linear television for digital platforms, Fox Corporation announced a $22 billion cash-and-stock acquisition of streaming hardware pioneer Roku on Tuesday.
The agreement prices Roku at $160 per share, an 11.4% premium over its last closing price. Fox will pay $96 in cash and 0.9693 shares of its Class A common stock per Roku share. The boards of directors for both companies unanimously approved the transaction, which is scheduled to close in the first half of 2027.
Following the close of the transaction, the combined entity will become the third-largest player in the U.S. television market by share of viewing. Existing Fox shareholders will own approximately 73% of the combined company, leaving Roku shareholders with the remaining 27%.
Fox CEO Lachlan Murdoch stated the transaction allows the network to secure a direct route into the living room by controlling the operating system where viewing sessions begin. Executives project run-rate cost synergies of $400 million by combining Fox’s live sports rights, news broadcasts, and its Tubi service with Roku’s direct relationship with over 100 million global streaming households.
How Hardware Control Alters Fox’s Digital Strategy
The $22 billion transaction dwarfs Fox’s 2020 purchase of the free streaming service Tubi for $400 million. By purchasing Roku’s platform and operating system, Fox secures an independent digital distribution channel to protect its assets.
This hardware integration reduces Fox’s reliance on third-party tech gateways, such as Apple and Amazon, to place its applications in front of consumers. The company will now possess the capability to combine live programming, free ad-supported streaming, and subscription models under one controlled viewing environment.
The acquisition guarantees Fox prime home screen placement for its 2026 FIFA World Cup coverage, NFL broadcasts, and MLB games. Operating the hardware also grants Fox direct access to lucrative audience viewership data, which historically remained siloed within third-party device manufacturers.