Fox Closes $22 Billion Roku Deal, Creating Third-Largest U.S. TV Entity

By Tom Whitfield

Fox Corp. has completed its $22 billion acquisition of Roku, a deal that closed today and makes the combined company the third-largest entity in U.S. television by share of viewing.

The merger pairs Fox's broadcast, news, sports, streaming and local news portfolio with Roku's open connected TV platform and first-party data drawn from more than 100 million global streaming households. Fox says the addition of Roku will create new opportunities to serve viewers, advertisers and partners.

Lachlan Murdoch, executive chair and CEO of Fox Corp., said acquiring Roku advances the company's long-term strategy and will continue to "relentlessly serve audiences and partners, while reinforcing the openness and choice that is the essence of the Roku platform."

How will Roku fit inside Fox?

Roku will be folded into Fox Digital Platforms, the unit that already houses the FAST service Tubi, the streaming service Fox One, and Red Seat Ventures.

Two executives will lead the expanded division. Roku founder Anthony Wood joins Fox's board of directors and serves as co-chair of Fox Digital Platforms alongside Paul Cheesbrough, the unit's CEO.

In plain terms: Fox now runs its streaming and digital businesses under one roof, with Roku's founder inside the leadership team.

What do shareholders receive?

Under the merger agreement, Roku stockholders will receive $95.30 in cash plus 0.9799 shares of Fox Class A common stock for each share of Roku Class A and Class B common stock they owned before the deal closed.

The ownership split is decisive. Fox shareholders will own approximately 74% of the outstanding shares of Fox common stock. The remaining approximately 26% goes to former Roku shareholders.

Why did Fox pursue the deal?

When the merger was announced in June, the two companies said they aimed to create a "scaled next-generation media and technology company" positioned to prosper amid rising consumption of live sports, news and streaming.

Wood, reflecting on the acquisition in a statement, said he was proud of what his team built and that combining with Fox provides an opportunity to accelerate Roku's vision, scale faster and be more aggressive in innovation for its audiences.

"I couldn't be more excited about what we'll accomplish together," Wood added.

What changes for the broader market?

The closing hands Fox a direct data relationship with more than 100 million streaming households, a scale few U.S. media owners can match, and stitches Roku's ad and distribution business into a portfolio spanning broadcast, sports, news and FAST.

The next signal to watch is how quickly Fox turns Roku's household data into advertiser demand across Tubi, Fox One and the wider platform.