Fox acquires Roku in a $22bn streaming bet



Fox acquires Roku in a $22bn deal that drags the cable-reliant broadcaster squarely into streaming. Fox Corporation will pay $160 a share, in cash and stock, for the maker of the streaming sticks and smart TVs sitting in more than 100 million households worldwide, the companies said on Monday.

The structure is $96 in cash plus 0.9693 Fox Class A shares for each Roku share, an enterprise value of about $22bn. Fox shareholders will own roughly 73 per cent of the combined company and Roku holders about 27 per cent. Fox has lined up $12bn in bridge financing from Morgan Stanley, expects to close in the first half of 2027, and will put Roku founder Anthony Wood on its board.

Why Fox wants Roku

Fox is buying a front door. Roku’s platform reaches more than half of all US broadband homes, and it is where many people land before they pick an app. That position, not the hardware, is the prize.

The money tells the same story. Roku makes most of its revenue from advertising and distribution, not devices: its platform segment brought in $4.1bn last year, 87.5 per cent of the total. Owning it hands Fox a connected-TV ad business, first-party viewer data, and a home screen to push its own services. Fold in Fox’s live sport and news, the NFL, MLB, the FIFA World Cup, and Fox News, plus its free streamer Tubi and The Roku Channel, and the pair claim one of the largest streaming businesses in the country.

A bet on where TV is going

The logic is the same one reshaping the whole industry: content and distribution are collapsing into each other. Fox spent the last decade narrowing to live news and sports, then bought Tubi in 2020. Roku is the next, larger step, taking it from a channel owner to the platform the channels run on.

It also lands in the middle of a media-consolidation wave. It comes days after the US Justice Department cleared Paramount’s $110bn purchase of Warner Bros. Discovery, and as players race to stitch their streaming stacks together for scale. Lachlan Murdoch, Fox’s executive chair, called it “a defining moment.” Wood called it “an extraordinary opportunity.”

What to watch

The deal is agreed, not done. It needs sign-off from both sets of shareholders and from US and some non-US regulators, though Wood and trusts holding most of Roku’s voting power have already committed their votes. On paper the combined firm would be the third-largest US player by share of viewing, the kind of scale that draws scrutiny, even if Fox’s content and Roku’s pipes are more complementary than overlapping.

Fox is promising to keep Roku “open” and “partner-friendly,” which matters: Roku’s value rests on being a neutral storefront for rivals like Netflix and Disney. The test is whether a Fox-owned Roku still feels neutral once Fox content sits on the home screen. Fox expects about $400m in cost savings and says the deal pays for itself on free cash flow by year two. The harder question is whether it can own the front door without scaring off everyone else who walks through it.



Source link

Leave a Reply

Subscribe to Our Newsletter

Get our latest articles delivered straight to your inbox. No spam, we promise.

Recent Reviews


I am a recent convert to physical media — yet even as someone getting back into buying discs in 2026, I haven’t been buying Blu-rays. Like many Americans, I still pick up DVDs instead. These aren’t great times for the Blu-ray format, and don’t expect a turnaround in 2026.

Fewer new releases make their way to Blu-ray

More media is now released exclusively for streaming

Blu-ray has been around for two decades, but it never managed to fully replace, or even overtake, the DVD format it was designed to supersede. We still can’t take for granted that our favorite movies, let alone TV shows, will eventually see a Blu-ray release.

The movies most likely to come to Blu-ray are the ones that hit theaters, but a growing amount of cinema is designed exclusively with streaming platforms in mind. I recently rewatched Mississippi Masala, which led me to check in on what work Sarita Choudhury has done over the decades since. A film called Evil Eye released in 2020 caught my eye. Unfortunately, it’s only available via Prime Video. There’s no Blu-ray or even a DVD. In contrast, it’s easy to watch Michael B. Jordan in Sinners on Blu-ray, since that movie came to theaters last year.

You could say that it makes sense that a movie with a 4.8/10 rating on IMDb doesn’t see a physical release, but in the heyday of physical video, store shelves were stacked not only with just the big-budget bangers but plenty of straight-to-DVD movies as well. Now those films exist to pad out streaming catalogs instead.

Fewer big box stores stock their shelves with physical discs

Blu-ray discs have disappeared from some stores entirely

Best Buy store front
Best Buy

The format’s demise is striking. I frequent my local Best Buy quite often and don’t see any movies on display. That’s because the retailer stopped selling movies in stores several years ago. Walmart still sells them, but the selection is a fraction of what you could find ten or twenty years ago. The audience has been reduced down to the shrinking number of people whose internet at home can’t handle streaming and those who might think of themselves as collectors.

If you venture onto Reddit and visit r/Blu-ray, you will find more threads about thrift store hauls and older collections than excitement over the latest new release. Don’t get me wrong — I, too, am very excited about seeing what gems I can snag for only a couple bucks, but this shows the challenge retailers face. Increasingly, only enthusiasts are prepared to drop over $20 on a disc.

I’m not buying discs to stick them in a player

Phone on a stand playing a Netflix video Credit: Bertel King / How-To Geek

The simple truth is that most people don’t want to buy physical media. Discs don’t fit in phones, and the drives are no longer available in most laptops. Even desktop PCs lack a place to put a disk. I recently built a PC for the first time in part to digitize my media library, and I rely on an external DVD drive connected via USB. Yes, DVD, not Blu-ray. A smaller file size combined with upscaling is easier on my hard drive.

Retro nostalgia hasn’t helped Blu-ray in the same way it has aided vinyl. This is in part because most people simply don’t care all that much about video quality. Most are streaming video on Netflix and YouTube at middling settings on small screens, and many of us are acclimated to mid-range phone speakers, compared to which even the subpar built-in speakers on modern TVs sound like a huge step-up. It’s hard to convince large numbers of people to purchase an expensive version of a movie in a format that requires thousands of dollars of home media equipment to truly appreciate.

4K Ultra HD is in an even worse position

It’s been a decade, yet few people own these discs

The 4K Ultra HD Blu-ray format is an enhancement, rather than a replacement, of the Blu-ray discs that first appeared in 2006. Debuting in 2016, the 4K Ultra HD format supports the max resolution of a 4K TV.

4K TVs were still somewhat of a novelty ten years ago, but they’re cheap and commonplace today. Still, people aren’t demanding 4K-quality Blu-ray movies as a result. These discs are still less common than 1080p ones, which are themselves still outnumbered by DVDs.

This isn’t merely a matter of consumers preferring the cheaper option. Often, 4K simply isn’t a choice, or it’s one that arrives significantly later, like the Switch port of a PC title. Some recent films, like Exit 8, are slated to see a physical release over the summer yet will still be in 1080p when they do. Adoption of the newest format has been that slow.

The industry isn’t helping itself, either. 4K Ultra HD Blu-ray discs come with DRM and aren’t easy to play on a modern PC, further limiting potential growth. They do not want anyone pirating these super high-quality versions. When you consider that some of these 4K Blu-rays have an AI upscaling problem, you’re paying more for what may not even be the best version.​​​​​​​


Blu-ray is seeing fewer releases, is available in fewer places, and is less accessible in the ways many of us want to watch TV shows and movies in 2026. With our portable devices getting better and internet speeds getting faster, it’s hard to see physical video staging a turnaround, even if we’re still a long way off from it going away entirely.



Source link