Fox taking over Roku for $22bn

US media giant Fox Corp has agreed a deal to buy Roku, the free, ad-supported streaming television (FAST) service, for $22 billion.

The move will put The Roku Channel offering under the same umbrella as Tubi, Fox’s own streaming platform that it bought in 2019 (and which it launched an OTT sports platform for in 2021).

Both parties have said the deal will create the third-largest operator across TV in terms of viewing share, and that it is expected to close in the first half of 2027.

The deal involves Fox acquiring Roku – which runs across the Americas, Europe, and Australia – for $160 per share, through “a combination of cash and Fox Class A common stock.” When the deal goes through – subject to the usual customary closing conditions – existing Fox shareholders will own 73% of the combined behemoth, with Roku shareholders owning the remaining 27%.

Anthony Wood, chair and chief executive (CEO) at Roku, will also join Fox’s board of directors.

Roku will continue to run as an open platform, while Fox and Roku have said they remain committed “to the continued ubiquitous distribution of Fox content.”

In terms of Fox’s existing sports rights portfolio, the US heavyweight’s portfolio currently includes properties such as American football’s NFL, baseball’s MLB, stock car racing’s Nascar, as well as college sports’ Big Ten. It is also broadcasting men’s soccer’s 2026 FIFA World Cup, which is being co-hosted by the US, right now.

Earlier this month, Fox Sports partnered with ReachTV, the travel media network in US airports, to provide coverage of all 104 live matches from the World Cup to travelers nationwide.

Lachlan Murdoch, executive chair and CEO at Fox Corp, commented: “This is a defining moment for Fox, and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade …

“Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it. This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile.”

Wood, also Roku’s founder, added: “I’m incredibly proud of what our team has built, and the combination with Fox is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers. That’s why our board of directors unanimously determined – after concluding its strategic review process – that this transaction offers a significant premium to Roku shareholders while also providing them with the opportunity to participate in the compelling future upside of the combined company.”

In terms of Roku’s sports coverage, last month the streamer acted as US (domestic) broadcast partner of the Enhanced Games, the controversial multi-sport event that made its debut in Las Vegas in late May.

Roku showed the action for free across the US, Canada, and Mexico.

In March, meanwhile, the streaming service expanded its agreement with global action-sports property X Games by securing exclusive rights in the US to X Games’ new X Games League. Sportcal