• Fox Corp is acquiring Roku in a deal valued at $22 billion.
• The acquisition aims to enhance Fox's streaming capabilities and reduce reliance on traditional TV.
• Fox will hold approximately 73% of the combined company post-acquisition.
• The deal is expected to close in the first half of 2027.
• Roku shareholders will receive US$160 per share, representing a premium to recent stock prices.

Fox Corp (FOXA.O) announced its acquisition of Roku (ROKU.O) for about $22 billion in cash and stock, aiming to enhance its position in the rapidly evolving streaming landscape. The deal, which includes a purchase price of $160 per share, is designed to combine Fox's substantial sports and news programming with Roku's significant streaming platform, which caters to over 100 million households, according to Reuters and CBS News.

This acquisition represents Fox's first major move under CEO Lachlan Murdoch since he took full control following a family settlement. Murdoch described the acquisition as a "defining moment" that solidifies Fox's strategy to pivot from a traditional cable model toward a more integrated streaming approach. This shift is vital as consumer preferences increasingly favor digital content across platforms, according to Channel News Asia and BBC.

The acquisition is expected to close in the first half of 2027 and will create the third-largest player in U.S. television by viewership. Fox's integration of Roku's advanced advertising and streaming capabilities is projected to generate around $400 million in annual cost savings. Industry analysts believe that this move will allow Fox to compete more effectively in the ad-supported streaming market, enhancing control over content discovery and monetization, according to South China Morning Post.

Following the announcement, shares of Fox fell nearly 14% in premarket trading while Roku shares rose slightly but remained below the acquisition offer price. Roku's revenue, primarily from advertising, experienced a year-on-year increase of 27%, underscoring its valuable position in the streaming market. The boards of both companies have unanimously approved the transaction, paving the way for a significant shift in the media landscape, according to South China Morning Post and Channel News Asia.