Fox Corp. to buy Roku in $22 billion deal

Fox Corp. has reached a deal to acquire Roku for around $22 billion, giving the company a larger position in streaming distribution and digital advertising.

Fox said Monday it will acquire Roku for $160 per share in a cash-and-stock transaction.

The company plans to fund the cash portion of the deal with cash on hand and new debt, including a $12 billion loan secured for the transaction.

It appears clear that Fox Corp. is eager to capitalize on Roku’s FAST offerings to bolster its ad revenue.

Roku has generated around $2.5 billion in ad revenue over the past 12 months, while Fox brings in $6.5 billion across all of its linear and digital assets. 

The deal would combine Fox’s news and sports assets, its broadcast network, FNC and the free ad-supported streaming service Tubi with Roku’s streaming device business and The Roku Channel.

The deal reflects the growing importance of advertising-supported streaming as media companies look for revenue growth beyond the traditional pay TV bundle. Live sports, news and events have remained central to that strategy because of their ability to draw consistent audiences.

Murdoch said Fox plans to keep Tubi and The Roku Channel separate after the deal closes, describing the services as “incredibly complementary.” He said the two platforms have about a one-third audience overlap.

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Tubi’s viewing is driven mostly by on-demand programming, while The Roku Channel also includes free streaming channels designed to resemble the traditional linear TV experience.

Despite its name, The Roku Channel is not a single channel, but rather a broader streaming offering.

The service is free to use, but integrates with paid streaming services. 

Those partnerships generated around $519 in revenue in the first quarter of 2026, a 30% increase, according to financial reports published earlier in 2026. The first quarter of the year represented the first time Roku broke out its subscription and advertising revenues.

Subscriptions carried a gross margin of just over 41% during the first quarter, according to the reports. While Roku likely takes a cut of most of the subscription revenue it signs up through The Roku Channel, it ultimately still has to pay streamers for those subscriptions, though likely at discounted rates from normal pricing. 

Murdoch said acquiring Roku would allow Fox to expand further into streaming, subscriptions and digital advertising, underscoring the importance of Roku’s ad revenue and subscription growth.

Fox said it expects about $400 million in run-rate cost synergies from the deal, along with additional revenue opportunities. After the transaction closes, existing Fox shareholders are expected to own about 73% of the combined company, with Roku shareholders owning about 27%.

The boards of both companies have approved the deal, which is expected to close in the first half of 2027.

The proposed transaction comes about seven years after Fox sold much of its linear portfolio to Disney in a $71 billion deal. Since then, Fox has centered its business around live news and sports, including its broadcast network and FNC.