Fox has bought Roku in a deal that could transform the TV giant into a free streaming powerhouse.
The timing of the $22 billion deal is a surprise. Fox originally said it expected its acquisition of Roku to be finalized in the first half of 2027.
Fox had said in September the US Department of Justice requested more information about its Roku deal, though the broadcast titan said that move was “expected.”
“Fox quickly closed on Roku before Democrats could control Congress and mount any opposition,” said Ross Benes, an analyst at Emarketer, Business Insider’s sister company.
Buying Roku will help Fox scale its advertising business while giving it control of The Roku Channel in addition to Tubi, the second- and third-largest free streaming services by US TV viewership. YouTube is the clear No. 1.
Together, Roku, Tubi, and Fox’s broadcast channel and cable networks — which include Fox News and FS1 — generate more TV viewership in the US than Netflix or NBCUniversal, according to Nielsen.
“Fox has been the only major broadcast network lagging behind streaming scale,” said media analyst Mike Proulx of Forrester. “This deal gives Fox more traction in streaming through a backdoor that’s not getting enough attention.”
Roku’s connected TV platform is in over 100 million households. It drove over $727 million in advertising revenue in its September quarter, up 23% from the year before, the company said on Monday.
Fox said in its deal announcement on Friday that it expects to generate about $400 million in annual cost savings within two years by buying Roku.
“Our top priority for the combined company is to continue to relentlessly serve audiences and partners,” Fox CEO Lachlan Murdoch said in a statement.
Gaining The Roku Channel gives Fox another asset in a hot area. As paid streamers raise prices, consumers have been increasingly turning to free services for their TV viewing.
“Fox will become a powerhouse in free ad-supported TV viewing,” Benes said.
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