The Fox Corporation — the US brand owned by the Murdoch family that operates FOX NEWS and streaming service Tubi — has snapped up streaming platform Roku in a massive deal worth $22 billion, roughly £16 billion converted.
Roku has quietly become a common fixture in British living rooms, and there's a good chance you've encountered its hardware or streaming channels. The company sells a range of streaming sticks in the UK, starting from £29.99, which plug into your television's HDMI port and provide access to services like Netflix, Disney+, BBC iPlayer, ITVX, and more through Roku's simple interface.
Beyond streaming devices, Roku's software powers smart TVs from brands including Sharp, Hisense, JVC, and TCL, and the company has recently expanded into projectors.
Used in more than 100 million households worldwide, Roku has become one of the leading platforms for accessing streaming content on TVs and other home entertainment devices. It's also behind the free ad-supported service The Roku Channel, which offers a variety of exclusive shows and films on its own devices, Smart TVs, and Sky TV boxes.
It also launched its own streaming service, which undercuts Netflix and Prime Video.
Anthony Wood, Founder and CEO of Roku, said: "Over the past two decades, we’ve built Roku into the leading TV streaming platform, reaching more than 100 million households globally and reshaping how people discover and enjoy entertainment.
"I’m incredibly proud of what our team has built, and the combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers.
"That’s why our Board of Directors unanimously determined after concluding its strategic review process that this transaction offers a significant premium to Roku shareholders while also providing them with the opportunity to participate in the compelling future upside of the combined company. I couldn’t be more excited about what we’ll accomplish together."
Once the deal with Fox is finalised, the combined company will become the "third-largest player in US television" by viewing share. However, this won't happen overnight. The deal isn't expected to close until the first half of 2027, and it still needs approval from regulators and shareholders.
So if you've got a Roku stick or TV at home, what does this actually mean for you?
Roku is one of the most popular streaming platforms, similar to the FireOS platform that powers Fire TV Sticks. You'll find it built into many smart TVs, or you can grab a standalone streaming stick that plugs into your telly. | ROKU PRESS OFFICEUntil this deal actually goes through, FOX and Roku remain completely separate businesses. Your Roku Streaming Stick will work exactly as it did yesterday — and yes, that means no changes to the controversial new redesign currently rolling out worldwide, and your Roku TV won't suddenly start behaving differently. Even after the paperwork is signed, reshaping how products work will take time.
However, there are a couple of things worth keeping an eye on down the line.
For starters, Roku users may have better access to sports content. Fox owns major sports and news properties, including the NFL, MLB, and the FIFA World Cup rights, to name a few. By combining Fox's content with Roku's platform, you could get easier access to live events, improved sports discovery features, and more seamless navigation between live and on-demand content.
Roku recently launched a specialised hub for the World Cup, so this could give you a peek into what's in store for the future. Fox already owns the free ad-supported streaming service Tubi, while Roku operates The Roku Channel. The Roku Channel is the platform's free ad-supported streaming hub, and is constantly getting treated to new content. For instance, they recently added 22 new channels to your screens.
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Combining these platforms could lead to a larger library of free movies, TV shows, news, and sports content supported by advertising rather than subscriptions. While Roku is known as a streaming company, it also operates as an incredibly successful advertising business.
Over the past year, Roku pulled in around $5 billion in revenue (£3.7 billion), with its devices making up just 11% of that. Advertising accounted for nearly half, with subscriptions covering most of the rest.
Fox is fundamentally an advertising operation too, and its pitch to investors leans on the idea of targeting Roku's home screen, its audience data, and its ad inventory. One of Fox's stated aims is to "accelerate the advertising engine."
That doesn't mean your Roku will suddenly drown in adverts. But a platform already earning half its income from advertising, now owned by a company keen to push harder, is worth watching.
Roku sells a range of streaming sticks in the UK, starting at £29.99, which plug into a TV's HDMI port and provide access to services like Netflix, Disney+, BBC iPlayer, ITVX, and more through Roku's simple interface
| ROKU PRESS OFFICEBoth companies have also stated that the merger should allow them to innovate more quickly.
Lachlan Murdoch, CEO of Fox Corporation, said: "This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile.
"And we are executing this acquisition from a position of financial strength – maintaining our investment-grade balance sheet while providing our shareholders with an uninterrupted return of capital program in the form of share buybacks and dividends. Roku pioneered streaming TV and scaled it into a leading CTV platform. Together, we intend to lead its next chapter.”
That could translate into faster improvements to Roku's operating system, recommendation engine, search features, voice controls, and content discovery tools. Since the US is normally treated to these updates first, the merger could help expedite their landing in the UK.