Fox to Acquire Roku for $22 Billion, Merging Content and Data
Fox announced the acquisition of streaming platform Roku for $22 billion, aiming to integrate its content and leverage Roku's data and ad platform.
Fox has announced a $22 billion deal to acquire Roku, the popular streaming device and smart TV platform. The acquisition, expected to close in 2027, will keep both companies operating separately, according to Fox CEO Lachlan Murdoch. Fox plans to bring its sports, news, and local station content to Roku's interface, potentially increasing viewership and ad revenue.
Roku CEO Anthony Wood, who will remain with the combined company, highlighted that the deal will allow Roku to better personalize its home screen promotions, using Fox content to drive more revenue. Roku generates most of its income from advertising and subscription commissions; in a recent quarter, it earned $613 million from ads and $519 million from subscriptions.
Fox also owns the free ad-supported streaming service Tubi, which competes with Roku's own Roku Channel. Murdoch noted that about one-third of Tubi viewers overlap with Roku Channel viewers, but he intends to keep the services separate. Meanwhile, Roku has expanded into paid subscriptions with Frndly ($6.99/month) and Howdy ($2.99/month), while Fox recently launched Fox One.
The deal raises concerns about media consolidation and political alignment. Jeff Chester of the Center for Digital Democracy warned that Fox's ties to former President Trump could have political implications. However, analyst Dan Rayburn expects minimal regulatory pushback in the US and EU, given Fox and Roku's smaller footprints abroad.
