Fox Corp. closed its $22 billion purchase of Roku on Friday, completing a transaction that instantly transforms the traditional television broadcaster into one of the country’s most formidable gatekeepers in digital video.
First announced in June, the deal concluded significantly earlier than the projected 2027 completion date after clearing a review by the Department of Justice and winning shareholder support in October, Variety and TheWrap reported. Under the transaction’s terms, former Roku investors received $95.30 in cash and 0.9799 Fox Class A shares for each share owned, giving them roughly 26 percent of Fox’s outstanding equity.
A massive shift in streaming scale
The takeover unites Roku’s connected hardware and streaming software with Fox’s expanding ad-supported portfolio. Roku brings access to more than 100 million households worldwide, providing Fox with direct influence over how viewers find apps and entertainment.
According to Nielsen figures cited by TheWrap, Roku and Fox’s Tubi collectively represented 4.8 percent of all streaming viewership in August. That matched Disney’s streaming footprint, trailing only YouTube and Netflix. Across all television viewing, including traditional broadcast networks, the combined business commanded 8.5 percent of August viewing, trailing only YouTube, Skydance, and Disney.
The combination also establishes an advertising juggernaut. Variety noted that Roku reported $4.1 billion in revenue across the initial nine months of 2026, driven by a 23 percent increase, with advertising providing 49 percent of sales. In recent quarterly disclosures reported by Deadline, Fox generated $2.1 billion in advertising sales, up 47 percent year over year, while Roku recorded $727.4 million.
The open ecosystem question
A critical test of the merger centers on whether Roku remains a neutral front door to the streaming market. Roku has historically functioned as an unaligned partner distribution vehicle for rival services such as Netflix, Disney+, and HBO Max.
Lachlan Murdoch, executive chair and chief executive of Fox Corp., pledged that Roku will stay an open platform without preferential treatment for properties such as Fox News or the Fox One subscription tier, according to reports from Variety and TheWrap. However, commentators at Engadget raised questions regarding whether the home screen could gradually favor Fox products, even while rival applications remain available.
The strategic shift also comes amid audience movements in traditional cable. Engadget reported that Fox News viewership fell 27 percent year over year in October, even as it maintained ratings higher than those of rivals CNN and MS NOW combined.
Reorganization and executive exits
Fox immediately folded Roku into a newly formed division titled Fox Digital Platforms. The umbrella operation incorporates Roku, Tubi, Fox One, and Red Seat Ventures, led jointly by Roku founder Anthony Wood and Paul Cheesbrough, Deadline reported.
Wood, who is joining the Fox board, pointed to expanded resources while asserting the core mission remains unchanged. Mustafa Ozgen, previously Roku’s head of devices and technology, has been named Roku’s chief executive. Former Apple executive Pete Distad has taken operational charge of Tubi alongside the Frndly TV bundle.
The integration is already sparking notable departures. Anjali Sud, who led Tubi’s expansion as chief executive, and Charlie Collier, the president of Roku Media, are leaving the organization, according to a corporate memo obtained by Deadline. Roku general counsel Chris Handman and AdRise executive Robyn Peterson are also stepping down.
Fox informed investors that it targets $400 million in annualized cost savings within the initial two years, which Variety noted strongly suggests employee cutbacks are coming. Company leadership told staff that internal town hall meetings are scheduled next week across San Jose, San Francisco, Los Angeles, Austin, and New York to outline further transition plans.
