Fox Corp. on Friday completed its $22 billion cash-and-stock acquisition of connected TV platform Roku, giving the media company a foothold as the entry point to TV viewing for over 100 million streaming households globally.
First announced in June, the deal secured shareholder approval from both companies last month and has now passed regulatory scrutiny, after reports surfaced earlier this week that the acquisition was nearing antitrust clearance by the U.S. Department of Justice.
Still, the completion comes well in advance of the first half 2027 close that Fox had previously guided to.
Per the announcement, the transaction speeds up Fox’s digital strategy that involves properties like AVOD powerhouse Tubi, direct-to-consumer streamers Fox Nation and Fox One, as well as Red Seat Ventures among others. Now in addition to Roku's TVOS, device platform, CTV ads and third-party subscription business, on the digital front it also has free linear ad-supported streamer The Roku Channel, virtual MVPD Frndly and low-cost ad-free Howdy SVOD.
Fox said its combination of premium live sports, news and local programming with Roku’s TVOS and CTV platform creates new opportunities for the media company to serve viewers, advertisers and partners.
With significant content plays of its own, there has been some concerns over what Fox control might mean for a TVOS platform that has built success on aggregating content and serving as a hub of discovery across the ecosystem with a strong user experience for viewers. However, in the announcement, Fox emphasized that from an operating standpoint “Roku will continue to play its role as a leading open ecosystem for the broader streaming industry.”
The company went on to say that a key factor of Roku’s large presence “is the choice it offers to viewers and the value it provides to content partners,” strengths that Fox and Roku intend to “preserve and build on.”
Fox expects to achieve approximately $400 million of run-rate cost synergies within two years after the transaction close.
“The closing of this acquisition advances the long-term strategy of Fox. Beginning today, our top priority for the combined company is to continue to relentlessly serve audiences and partners, while reinforcing the openness and choice that is the essence of the Roku platform,” stated Fox CEO Lachlan Murdoch. “Our shared entrepreneurial passion and clear conviction toward building the future together with our new Roku colleagues gives us great confidence in the opportunities ahead of us.”
Roku founder Anthony Wood is joining the Fox board of directors. And alongside Paul Cheesbrough, Wood will assume the role of co-chair of Fox Digital Platforms, the newly formed division that includes Roku, Tubi, Fox One, Red Seat Ventures and its other digital products and services. Cheesbrough is also CEO of Fox Digital Platforms.
“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,” said Wood in a statement. “Fox has a deep respect for Roku’s culture and wholly shares our commitment to staying open to every content partner. Our teams will keep building and innovating as they always have, now with the support and capabilities of Fox behind us. I’m proud of what Roku’s employees have built, and I’m excited about what comes next.”
Closing of the deal comes after Roku earlier this week reported another successful financial quarter on the back of continued platform revenue gains, driven by Q3 upticks in advertising and subscription revenue.
It also comes amid other changes in the TVOS space, including Walmart’s 2024 $2.3 billion purchase of smart TV maker and TVOS platform Vizio, where the retail giant is working to more tightly connect content, commerce and advertising.
For Fox, in addition to its existing pay TV presence it now has a foothold across multiple parts of the streaming ecosystem, including a leading linear FAST with The Roku Channel, virtual MVPD Frndly and powerful distribution and discovery hub – not to mention a growing CTV ads business – via Roku.