Fox acquires Roku for $22 billion, accelerating streaming advertising business layout

Key Takeaways

• Fox Corporation announced plans today to acquire Roku for approximately $22 billion,according to a press release. The cash-and-stock deal is subject to customary closing conditions.
• The deal combines Fox's content assets with Roku's connected TV (CTV) platform, which reaches over 100 million households globally. Roku will continue to operate as an open platform for other streaming services.
• The combined company generated approximately $9 billion in advertising revenue over the past twelve months and would become the third-largest player in the U.S. TV market by viewing share, becoming a significant force in the evolving streaming landscape.

Deep Dive

Fox's move to acquire Roku shakes up the advertising market, combining news, sports, and entertainment content with the leading U.S. CTV operating system, which reaches over half of broadcast TV households and captures first-party data from them. The deal recognizes the rise of streaming and the enduring power of live sports and news in driving viewership.

"This combination will expand our reach into high-growth areas and significantly enhance our overall growth profile," Fox CEO Lachlan Murdoch said in the press release. "Roku pioneered streaming TV and has built it into the leading CTV platform. Together, we plan to lead its next phase of growth."

The deal gives Fox a larger foothold in CTV—Fox launched its direct-to-consumer streaming service Fox One last year. CTV channels generate both advertising and subscription revenue. According to EMarketer data shared by the company, these two markets are expected to reach approximately $60 billion and $85 billion, respectively, by 2030.

Fox will also control both Tubi and The Roku Channel, two of the largest free ad-supported streaming TV (FAST) channels, strengthening its position in one of streaming's fastest-growing segments. Mike Proulx, vice president and research director at Forrester, said all major streaming platforms are currently competing for advertising revenue.

"2026 is shaping up to be a defining year for streaming consolidation, with the shift being that streaming is no longer just about premium content slates but about owning the full stack. If this deal closes, Fox would have more control over what viewers watch, how they discover content, and how it is monetized," Proulx said in an emailed comment.

Over the past twelve months, approximately $2.5 billion of Roku's revenue—nearly half of its total—came from advertising, while Fox generated approximately $6.5 billion in advertising revenue over the same period, according to details disclosed on an investor call. Executives expect the deal to accelerate the advertising flywheel between Fox's inventory, demand, and engagement and Roku's first-party data, targeting, measurement, and personalization capabilities.

"Roku really has a unique expertise in performance marketing that we can apply across the platform. I think the advertising synergies or revenue upside is very significant," Murdoch said on the investor call.

According to Nielsen Gauge data, the combined company would become the third-largest player in monthly TV viewing share, behind YouTube and Disney and ahead of Netflix and Paramount. However, its ranking could slip if the planned merger between Paramount and Warner Bros. Discovery is completed.

Roku is expected to continue operating as an open platform for other streaming services, such as HBO Max and Prime Video, which are accessible through its operating system.Roku previously partnered with Amazon Adsto offer advertisers its certified audience reach through Amazon DSP. Roku's platform revenue—the business segment that includes advertising—grew 18% year-over-year in Q4 2025 to a record $1.22 billion—a growth rate that Roku executives saidoutpaced the broader U.S. OTT and digital advertising market last year。

Fox's advertising revenue in fiscal Q3 2026totaled $1.56 billion, down from $2.04 billion in the same period last year, primarily due to the absence of the Super Bowl broadcast. However, an additional NFL wild-card game and continued growth at Tubi, which Fox acquired in 2020, partially offset the decline. Tubi has beencentral to Fox's growth strategy. The company has also recentlyincreased its promotional efforts for Fox One, positioning the service as the home for watching the World Cup this summer.