Fox Corporation has agreed to buy streaming platform Roku in a cash-and-stock deal valued at approximately $22 billion, including debt, a transaction that will further consolidate the media industry and reshape the competitive landscape for streaming in New York and beyond.

The deal will give Fox access to more than 100 million global households, along with the Roku Channel and its first-party data. Fox oversees a massive sports, news, and entertainment network, as well as Tubi, which it acquired in 2020. Combined, the companies say they will become the third-largest player in US television by share of viewing.

Fox will pay $96 in cash and 0.9693 shares of its Class A common stock for each Roku Class A and Class B share outstanding, valuing the transaction at $160 per Roku share. Existing Fox shareholders are expected to own approximately 73 percent of the combined company, with Roku shareholders owning about 27 percent.

‘The combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers,’ said Roku founder and CEO Anthony Wood, who will join the Fox board of directors after the transaction closes.

Fox CEO Lachlan Murdoch said combining the businesses will bring together Fox’s live news and sports content with a streaming platform that has large viewership. The deal also gives Fox more exposure to advertising and streaming subscriptions.

For New York’s media and advertising industry, the merger has significant implications. Fox is headquartered in New York, and the combined company’s expanded data capabilities could reshape how advertisers target audiences across streaming and traditional television. The deal positions the combined entity as a more formidable competitor to Netflix, Amazon, and Disney in the battle for streaming viewership and ad dollars.

The acquisition comes amid a wave of media consolidation. Comcast recently announced plans to spin off NBCUniversal, Paramount’s merger with Warner Bros. Discovery faces antitrust challenges, and OpenAI filed for an IPO as the AI investment race intensifies. The Fox-Roku deal represents a different strategy, combining content with distribution technology rather than merging two content companies.

Roku will continue to be run as an open, partner-friendly platform, the companies said, meaning consumers are unlikely to see immediate changes. The deal is expected to close in the first half of next year, pending approval from Fox and Roku shareholders and regulatory approval.

The deal also highlights the growing importance of connected TV advertising in New York’s digital economy. With Roku’s first-party data and Fox’s premium content, the combined company could offer advertisers targeting capabilities that rival those of digital giants like Google and Meta, which have dominated the online advertising market.

Sources: NBC New York, Fox Corporation