Fox completes $22b Roku deal to expand digital reach

Fox has finalized a $22 billion acquisition of streaming platform Roku, solidifying the deal and bolstering the company's position in the highly competitive connected TV and streaming market. The acquisition, announced on Friday, makes Roku, a company founded in 2002, a formally owned subsidiary of Fox. The combined entity now holds the third-largest television business in the U.S. by viewership, according to Fox.

Roku founder Anthony Wood stated that the merger maintains the company's original mission of providing users with an improved TV-watching experience while offering increased reach and resources. "Our teams will keep building and innovating as they always have, now with the support and capabilities of Fox behind us," Wood added in a statement.

This acquisition grants Fox direct access to Roku's extensive reach of over 100 million households. The company anticipates that this expanded audience will enhance its advertising targeting capabilities, strengthen its position in the rapidly growing connected TV sector, and lessen its dependence on traditional TV distribution. The news of the acquisition reached the public two months after the U.S. Justice Department issued a second request for information, triggering an antitrust review.

Interestingly, the deal concluded ahead of schedule, surpassing the initial projected completion date of the first half of 2027. Reports had suggested earlier this month that the acquisition was nearing approval by U.S. regulatory authorities.