Fox to buy Roku for $22bn

Fox has agreed a takeover of Roku in a deal worth $22bn (£16.4bn).

It was announced before financial markets opened in the US that Fox, now run by Lachlan Murdoch following the retirement of his father Rupert in 2023, was to pay $160 per share in a cash and stock offer.

The price represented a premium of 11% to Roku's closing price on Friday.

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Roku, which operates across the Americas, Europe and Australia, was one of the first companies to bring streaming platforms like Netflix and YouTube to television through connected devices and smart TVs.

As such it is a competitor of Sky, the owner of Sky News.

Its business is largely driven by advertising and subscription revenue from streaming apps on its platform.

The two sides said the deal, which is subject to regulatory and shareholder approval, was expected to close in the first half of 2027.

There was a 2.5% jump in Roku's share price in pre-market dealing following the announcement.

Shares in Fox, which primarily focuses on its US news and sports channel business, were more than 10% lower.

Market analysts said the rationale for the tie-up would be an acceleration in Fox's digital footprint, especially in its core US market.

Fox already operates Tubi, while Roku runs The Roku Channel, and a combination of the two platforms could create a clear leader in streaming with a meaningful share of total TV viewing, JP Morgan analysts wrote on Sunday when rumours of a sale were already escalating.

The Reuters news agency had reported on Friday that Roku was exploring its strategic options, including a full sale of the firm, amid interest from companies seeking access to its streaming audience and advertising platform.

The combined company would become the third-largest player in US television by share of viewing, the companies said.

(c) Sky News 2026: Fox to buy Roku for $22bn