Fox Corp. will buy streaming company Roku in a cash-and-stock deal worth about $22 billion, including debt, creating the third-largest player in the US television market, according to the companies.
The combined entity will trail behind YouTube and Disney. Roku will continue to operate as an open platform, with no immediate changes for users. Founder and CEO Anthony Wood will remain involved with the company and join Fox’s board after the deal closes.
The acquisition gives Fox access to more than 100 million households worldwide, along with Roku’s advertising technology and streaming data. The merger could generate about $400 million in annual cost savings.
Under the agreement, Roku shareholders will receive $160 per share, representing a 33.7% premium over the company’s recent closing price.
The deal is expected to close in the first half of 2027, but still requires shareholder and regulatory approval.