Fox FOXA has agreed to acquire streaming platform Roku ROKU in a cash-and-stock transaction valued at approximately $22 billion, the companies announced on Tuesday. Under the agreement, Roku shareholders will receive $160 per share, consisting of $96 in cash and 0.9693 shares of FOX Class A common stock.
The acquisition combines FOX’s portfolio of sports, news and entertainment assets, including ad-supported streaming service Tubi, with Roku’s leading connected-TV platform, The Roku Channel, and its reach of more than 100 million global streaming households. The companies said the merger will create a scaled media and technology business positioned to capitalize on the growing shift toward streaming and connected television.
ROKU Buyout to Boost FOXA’s Footprint
The acquisition of Roku represents the culmination of Fox’s long-stated strategy to expand beyond its core live sports and news franchises into faster-growing digital businesses while maintaining financial discipline. At the MoffettNathanson conference in May, president and COO John Nallen stated that FOXA was actively looking for a "sweet spot acquisition" that could grow the enterprise while fitting within its core competencies.
Fox Corporation Price and Consensus
Fox Corporation price-consensus-chart | Fox Corporation Quote
The Roku acquisition provides that opportunity by immediately expanding Fox’s presence in connected TV advertising and streaming subscriptions, two of the fastest-growing segments of the media industry. During the acquisition call, Lachlan Murdoch described the transaction as positioning FOXA at the intersection of “the enduring primacy of live news and sports” and “the continued rise of streaming.” He argued that the combination strengthens FOXA’s traditional business while expanding its presence in connected TV advertising and subscription aggregation.
A key attraction is Roku’s scale. The company reaches more than 100 million streaming households globally, is present in over half of U.S. broadband homes, and controls the leading connected-TV operating system in the U.S. market.
Fox management also sees significant advertising benefits. The company noted that Roku’s home screen serves as the “front door” to streaming, generating valuable consumer data and engagement insights. Combined with FOX’s premium sports, news and local content, the company expects improved ad targeting, enhanced monetization and broader reach across advertisers. This is expected to boost Fox’s advertising revenues, which declined 24% year over year to $1.56 billion in the third quarter of fiscal 2026.
Roku Acquisition to Aid FOXA’s Digital Transformation
The acquisition also accelerates FOXA’s digital transformation. On the May earnings call, management highlighted strong momentum at Tubi and FOX One, both of which are attracting new audiences and helping offset traditional pay-TV declines. Tubi, Fox’s ad-supported streaming service, reaches over 100 million monthly active users, with more than half identifying as Gen Z or Millennial. FOXA believes Roku can amplify those efforts through cross-promotion, content discovery and direct consumer relationships. This is expected to boost Fox’s advertising revenue market share compared with the likes of Netflix NFLX and Amazon AMZN.
Netflix has set an ambitious target to double its revenues by 2030 and continues to target about $3 billion of advertising revenue in 2026, helped by a larger advertiser base and easier programmatic buying. Netflix reported more than $1.5 billion in 2025, and the company is prioritizing easier buying through its ad-tech stack and expanding DSP integrations.
Meanwhile, Amazon’s advertising business continues rapid expansion as brands allocate more marketing budgets to its platform, leveraging its valuable consumer data and purchase intent signals. Advertising services revenues increased 24% year over year to $17.2 billion in the first quarter of 2026. Amazon’s advertising business is growing to more than $70 billion in trailing-12-month revenue.
Financially, the deal is expected to generate approximately $400 million in annual cost synergies for FOXA, with additional revenue opportunities, and become accretive to free cash flow per share within two years of closing. This Zacks Rank #1 (Strong Buy) company also estimates that roughly 30% of non-GAAP revenues will come from digital platforms such as Roku and Tubi, significantly improving the company's long-term growth profile. You can see the complete list of today’s Zacks #1 Rank stocks here.
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