Fox shares are down 8% before the market opens. Roku shares: halted. The number on the table is $22 billion, cash-and-stock, $160 a share [2]. An 11.4% premium to Roku's last closing price that the market is already discounting in real time [2].
The announcement came Monday [2]. Deal closes first half of 2027 [2]. Existing Fox shareholders will own 73% of the combined company [2].
But Fox isn't buying content. It's buying infrastructure.
Roku is an operating system. Built into streaming devices Roku sells [2]. Licensed to and built into connected televisions from other manufacturers [2]. The top streaming OS in the U.S., reaching more than half of broadband households [2]. One hundred million streaming households [2]. One hundred forty-five billion streaming hours in 2025 [2].
Roku was among the first to put Netflix and YouTube on television screens [2]. Now it's the road every streamer drives on.
the revenue engine
Advertising brought in $613 million in the first quarter, up 27% year-on-year [2]. That's the largest revenue component [2].
Roku also collects fees from subscription platforms that sell through its system [2]. Device sales. Licensing deals [2].
And The Roku Channel: free, ad-supported, on-demand and live TV [2]. It sits on the OS Roku controls.
what Fox already owns
Tubi. Also free. Also ad-supported. Also streaming [2].
Tubi lives on Roku's OS in millions of homes.
Fox is buying its own landlord.
The combined company will become the third-largest player in U.S. television by share of viewing, per the companies [2]. Fox now owns the platform. The tollbooth. One of the cars driving through.
Reuters reported Friday that Roku was exploring strategic options, including a full sale [2]. By Monday, the deal was announced.
The deal is expected to close in the first half of calendar year 2027 [2]. Existing Fox shareholders will own about 73% of the combined company [2]. Roku shares remained halted [2].
Trading is expected to resume Tuesday morning [2].
Fox gets distribution. Roku gets scale. The infrastructure play just became vertical.
