Fox Completes Its $22 Billion Roku Acquisition
Fox said Friday it has closed its purchase of Roku, months ahead of schedule. The deal puts the streaming platform used in more than 100 million households under Fox ownership.
Fox completed its $22 billion acquisition of Roku on Friday. The deal closed months ahead of schedule and gives Fox control of one of the largest streaming platforms in the United States.
Fox announced the deal in June. At the time, the companies said they expected it to close in the first half of 2027. It closed in under six months instead.
Roku shareholders will receive $95.30 in cash and 0.9799 shares of Fox Class A stock for each Roku share they held. Fox shareholders will own about 74 percent of the combined company. Former Roku shareholders will own about 26 percent. Roku shares stopped trading on the Nasdaq on Friday.
Roku founder Anthony Wood will join the Fox board of directors. He will also serve as co-chair of Fox Digital Platforms, a new division that includes Roku, the free streaming service Tubi, the Fox One streaming service and Red Seat Ventures. Paul Cheesbrough, the division’s chief executive, will serve as the other co-chair.
“We started Roku more than two decades ago to give people a better way to watch TV, and that mission doesn’t change today. What does change is our reach and resources,” Wood said in a statement. “Our teams will keep building and innovating as they always have, now with the support and capabilities of Fox behind us.”
Fox said the combined company is now the third-largest television business in the United States by viewership. Roku reaches more than 100 million households. Fox said the deal will help it sell advertising more precisely and rely less on traditional television distribution.
Fox expects about $400 million in annual cost savings within two years of the closing. It said the deal should add to free cash flow per share by the second full year after the deal closes.
The deal cleared its last hurdles in recent weeks. The Justice Department issued a second request for information in September as part of its antitrust review. Shareholders approved the deal in October.
Fox executive chair and chief executive Lachlan Murdoch said the deal advances the company’s long-term strategy. It will “relentlessly serve audiences and partners, while reinforcing the openness and choice that is the essence of the Roku platform,” he said.
Roku was founded in 2002. Fox’s portfolio now includes its broadcast network, Fox News, Fox Sports, its local television stations, Tubi and Fox One, alongside Roku’s platform.
