Fox is reportedly negotiating to buy Roku for $160 per share in a mix of cash and stock, a deal that would merge the media giant's content library with the streaming platform's reach. The talks, first reported by The Wall Street Journal, would value Roku at roughly $23 billion based on its outstanding shares, though neither company has confirmed the figure. If completed, the acquisition would mark Fox's biggest bet yet on direct-to-consumer streaming.
Why Roku?
Roku's platform powers millions of smart TVs and streaming devices, giving Fox a direct pipeline to cord-cutters. Fox owns sports rights, news via Fox News, and entertainment from its broadcast network and studios. Combining the two could let Fox bundle its channels with Roku's free ad-supported TV service, the Roku Channel, and tap into its growing advertising business. Roku has been expanding its ad revenue and original programming, but it faces stiff competition from Amazon, Google, and Samsung. Fox might see Roku as a way to control its own distribution without relying on those rivals.
Deal Structure and Timeline
The offer is $160 per share, a premium over Roku's recent trading price, but the exact split between cash and stock hasn't been disclosed. Fox has the cash on hand from its sale of most of 21st Century Fox to Disney in 2019, plus its remaining assets. The deal could close within months if talks progress, though leaks have already pushed Roku's stock up sharply in after-hours trading. Shareholders would need to approve the transaction, and the board of each company would have to sign off.
Regulatory Scrutiny Ahead
A Fox-Roku combination would likely draw antitrust review. The Federal Trade Commission or the Justice Department could question whether Fox's ownership of both content and a major streaming platform gives it too much control over the market. Fox already owns Tubi, another free ad-supported streaming service, which it bought in 2020. Owning Roku as well could concentrate power in the fast-growing connected TV advertising space. Regulators may also examine how Fox might use Roku's user data to target ads across its properties.
Neither Fox nor Roku has commented publicly on the reports. Roku's next earnings call is scheduled for early next month, and executives could face questions from analysts about the rumor. Fox is expected to report quarterly results later this month. For now, investors are watching for any official statement or filing that would confirm the talks are real — or that they've fallen apart.
