Fox Corp announced an acquisition of streaming platform Roku for $22 billion, combining two major players in the television landscape. The deal positions the combined entity as the third-largest TV company in the United States, behind only Comcast and Charter Communications.
Fox gains control of Roku's operating system and distribution platform, which reaches over 70 million active accounts globally. Roku's software powers smart TVs and streaming devices, giving Fox direct access to a massive installed base of viewers. The acquisition consolidates Fox's push into streaming and ad-supported television, moving beyond traditional cable.
Roku has built its business around licensing its platform to TV manufacturers and offering its own Roku Channel with free ad-supported content. The company also operates an advertising business that connects brands to Roku's audience. Fox plans to leverage these capabilities alongside its existing content library and media properties.
The deal values Roku at approximately $22 billion, though the exact per-share price remains subject to market conditions. Fox expects the acquisition to close in 2025, pending regulatory approval. The combined company intends to accelerate ad revenue growth by integrating Roku's advertising platform with Fox's content offerings and distribution channels.
This acquisition reflects the broader consolidation in media as traditional broadcasters race to compete with Netflix, Disney Plus, and other streaming giants. Fox has been aggressively expanding its streaming footprint, and Roku provides an infrastructure advantage that would take years to build independently.
Roku shareholders gain exposure to Fox's content and advertising ecosystems, while Fox shareholders get a proven streaming platform with established relationships across the TV manufacturing industry. The deal essentially merges advertising technology with content distribution, betting that controlling both sides of the streaming equation will drive profitability in an increasingly fragmented media landscape.