Fox pays $22 billion for Roku at $160 per share, gaining 80 million streaming accounts and its smart-TV operating system in the biggest bet yet on direct-to-consumer distribution.
Fox on Monday announced a $22 billion deal to acquire Roku, paying $160 per share in a mix of cash and stock. The acquisition is Fox's largest bet on streaming television to date.
CEO Lachlan Murdoch called the deal a "defining moment" for the company. Fox will gain Roku's 80 million active accounts and its operating system, which powers smart TVs from brands including TCL and Hisense. The combination gives Fox direct access to viewers who have been cutting traditional cable subscriptions.
The deal values Roku at roughly 4.5 times its trailing revenue, a premium to peers but below the multiples paid for streaming assets during the pandemic-era boom. Fox will fund the cash portion through a combination of existing cash and new debt, the company said.
Roku shareholders will receive $80 per share in cash and 0.5 Fox Class A shares for each Roku share held. The transaction is expected to close in the second half of 2025, subject to regulatory approval.
Fox has been building its streaming presence through Tubi, the free ad-supported service it acquired in 2020 for $440 million. Tubi now reaches 80 million monthly active users. Adding Roku's platform gives Fox control over the distribution layer – the software that decides which apps appear on a TV's home screen and how ads are sold against that inventory.
Roku has struggled with slowing hardware margins and a competitive ad market. The company reported a net loss of $108 million in its most recent quarter. Fox's balance sheet and content library could help Roku negotiate better carriage deals with programmers and expand its ad business.
The deal faces scrutiny from antitrust regulators who have questioned consolidation in media and technology. Fox and Roku overlap in advertising sales and content distribution, though Fox argued the combination creates a stronger competitor to larger platforms like Google's Chromecast and Amazon's Fire TV.
Fox shares fell 3.2% on the announcement. Roku shares rose 14% to $158.50, just below the deal price, suggesting some investors see a small risk the transaction could be blocked or renegotiated.
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