Media giant Fox has announced its acquisition of streaming service Roku in a groundbreaking deal valued at US$22 billion, a move that positions the new entity as the third-largest player in U.S. television by viewing share. The acquisition, which includes a cash-and-stock offer of US$160 per share, marks a strategic step for Fox as it seeks to strengthen its foothold in the increasingly competitive online TV landscape.
Fox’s CEO, Lachlan Murdoch, emphasised that this acquisition is a pivotal moment for the company, aligning with its long-term strategy focused on live news and sports. Murdoch highlighted prior moves, such as the 2019 reorientation towards live content and the 2020 acquisition of Tubi, which has thrived under Fox’s guidance. He expressed confidence that integrating Roku’s streaming platform with Fox’s extensive portfolio of live content will create a robust offering for viewers.
Roku is recognised as the leading streaming service for smart TVs in the United States, operating on over 25% of internet-connected devices. The platform was one of the pioneers in making streaming accessible to mass audiences, providing services like Netflix and Amazon Prime, as well as its own offerings. Currently, more than 100 million households worldwide use Roku, with key competitors including Amazon’s Fire TV, Google TV, Chromecast, and Apple TV.
The acquisition will enable Fox to merge Roku’s streaming service with its own, Tubi, enhancing the competition against major players like Netflix and Amazon. Roku has already made a name for itself with original productions, including reality-based shows and lifestyle content.
This merger comes at a crucial time, as advertisers shift their spending toward streaming platforms, with some estimates projecting US$20 billion in spending by 2029, approaching traditional TV advertising budgets. The combined scale of Fox and Roku is expected to bolster their competitive edge in attracting advertising revenue.
In its announcement, Fox underscored the transition from fixed viewing times for television programming to the flexibility of streaming, while also reaffirming the ongoing importance of live sports and news in engaging audiences. With this acquisition, Fox aims to solidify its presence in an industry steadily moving toward digital consumption.
