Fox Corp. has agreed to acquire streaming platform Roku in a cash-and-stock deal valued at approximately $22 billion including debt, a transaction that would create the third-largest player in U.S. television by share of viewing and reshape the media landscape as streaming consolidation accelerates through 2026.

Deal Terms

Fox will pay $96 in cash and 0.9693 shares of its Class A common stock for each Roku Class A and Class B share outstanding, valuing the transaction at $160 per Roku share. Existing Fox shareholders are expected to own approximately 73% of the combined company, with Roku shareholders holding about 27%. Roku will continue to operate as an open, partner-friendly platform, and Roku founder and CEO Anthony Wood will join the Fox board of directors after the transaction closes, according to the San Diego Union-Tribune.

Strategic Rationale

Fox CEO Lachlan Murdoch said the combination brings together Fox’s live news and sports content with a streaming platform that has large viewership, while also giving Fox more exposure to advertising revenue and streaming subscriptions. The deal gives Fox access to more than 100 million global households, the Roku Channel, and its first-party data — a valuable asset as advertisers shift spending toward connected TV. Murdoch said during a conference call the combined company will be “better positioned for the next decade of video than either company would’ve been alone.”

Mike Proulx, research director at Forrester, said advertising revenue is the critical component of the deal. “This deal accelerates Fox into that shift with built-in audience scale. With 2026 shaping up as a defining year of streaming consolidation, the market shift is that streaming is no longer just about quality content slates. It’s about controlling the full stack.”

Market Reaction and Next Steps

Shares of Fox tumbled 15% on the announcement, while Roku declined nearly 2%. The deal, which requires approval from both companies’ shareholders as well as regulatory clearance, is expected to close in the first half of next year. Roku, which maintains a significant San Diego engineering presence, was originally spun off by Netflix in 2008 after Wood’s team developed the first streaming set-top box there. Prior to Fox, potential buyers including Netflix, Amazon, Comcast, and Disney had been speculated. Roku, which employs hundreds of engineers and product staff in San Diego, could see operational changes as the integration proceeds, though Fox has indicated the platform will maintain its open approach to third-party content partners.