Fox steps up streaming ambitions with $22 billion Roku acquisition

2 hours ago 16

Fox is making its biggest bet yet on streaming TV.

Fox on Monday announced it had entered an agreement to acquire Roku for a mix of cash and stock. The $160-per-share deal gives Roku an enterprise value of around $22 billion, Fox said.

The deal combines Fox's sports, news, and entertainment content with Roku's connected-TV devices and digital ads business.

Fox CEO Lachlan Murdoch said in a statement that the deal marks "a defining moment for the company."

"This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile," Murdoch added.

Fox's shares were down by about 10% in premarket trading. Trading of Roku's shares was halted.

In acquiring Roku, Fox would get access to more than 100 million households worldwide that stream TV across a variety of apps using Roku's platform. Fox said it would become the third-largest player in US TV by share of viewing once the deal completes, which it expects in the first half of 2027.

In 2020, Fox acquired the ad-supported streaming service Tubi for $440 million. Last year, it launched Fox One, its own subscription livestreaming service, on which it is currently broadcasting the World Cup, as well as its news and entertainment programming.

Fox said it was committed to continuing to operate Roku as "an open partner-friendly platform."

Lightshed Partners media analyst Rich Greenfield said in an interview on CNBC on Monday that Fox was acquiring a "TV gatekeeper."

"Whether it's Netflix, whether it's Paramount+, whether it's Prime Video, anyone who wants to have a streaming service has to play ball with Roku," Greenfield said.

Lara O'Reilly is the anchor of the CMO Insider newsletter.She is a senior correspondent who has covered the digital advertising, marketing, and media industries since 2010. Her current beat includes big tech companies like Alphabet, and Meta, and adtech firms, agencies, publishers, the creator economy, and CMOs.Lara has previously worked as a reporter and executive producer at titles including The Wall Street Journal, Digiday, Yahoo Finance, and Marketing Week. She was previously Business Insider's senior global advertising editor from 2014 to 2017.Lara was named "Digital Journalist of the Year" by the London Press Club in 2016.Lara is a regular guest on TV and radio and has appeared on outlets such as the BBC, NPR, SiriusXM's Wharton Business Daily, and CTV Television Network. She also frequently speaks on stage at major events such as Web Summit, IFA, VivaTech, Advertising Week, and Cannes Lions.To get in touch with Lara O'Reilly, email loreilly@businessinsider.com or contact her on Signal at @loreilly.71Check out Insider's source guide for tips on sharing information securely.Read some of Lara's recent work below: