Fox has announced a $22 billion acquisition of Roku in a cash-and-stock transaction, marking one of the biggest media and streaming deals of 2026. The acquisition is designed to strengthen Fox’s position in the rapidly evolving television and streaming market while significantly expanding its digital advertising capabilities and direct consumer reach.
Under the agreement, Fox will acquire Roku for $160 per share, offering Roku shareholders $96 in cash and approximately 0.97 Fox Class A shares for each Roku share. The offer represents a 33.7 percent premium to Roku’s previous closing share price.
Following completion of the transaction, Fox shareholders will own about 73 percent of the combined company, while Roku shareholders will hold the remaining 27 percent.
The deal gives Fox access to Roku’s platform, which reaches more than 100 million streaming households globally. By combining Fox’s portfolio of live sports, news and entertainment content with Roku’s connected TV ecosystem, the merged company aims to create a stronger digital advertising business, improve audience targeting capabilities and reduce dependence on traditional cable television distribution.
The combined company will become the third-largest player in U.S. television by share of viewing, with an attractive mix of FOX’s sports, news, and entertainment content, alongside streaming services Tubi and The Roku Channel.
Fox CEO Lachlan Murdoch described the transaction as a strategic move that will help shape the future of television. The acquisition is the first major deal completed under his leadership following the Murdoch family’s recent governance transition. Roku founder and CEO Anthony Wood will continue to play a role in the company and will join Fox’s board of directors after the merger closes.
The combined entity is expected to become the third-largest player in U.S. television viewing, behind YouTube and Disney, according to industry estimates. Fox expects the acquisition to strengthen the distribution of premium sports content, including NFL, MLB and FIFA World Cup programming, while creating additional opportunities for monetization through Roku’s advertising technology and streaming platform.
Financially, the transaction includes approximately $14.6 billion in cash and will add about $8.3 billion of debt to Fox’s balance sheet. The companies expect to generate around $400 million in annual cost synergies after integration. The merger has been unanimously approved by both boards and is expected to close during the first half of 2027, subject to regulatory and shareholder approvals. The acquisition reflect the importance of streaming platforms, connected TV advertising and direct-to-consumer media services as traditional television companies seek new growth opportunities in the digital entertainment industry. Fox’s purchase of Roku positions the company to compete more effectively for streaming audiences, advertising revenue and premium content distribution in the years ahead.
BABURAJAN KIZHAKEDATH