Fox Closes $22 Billion Roku Takeover, Says Streaming Platform Will Remain ‘Open Ecosystem’ — SkimNews
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- Fox Corp. closed its $22 billion acquisition of Roku on Friday, well ahead of the expected 2027 date; Lachlan Murdoch said the deal advances the company’s long-term strategy.
- Anthony Wood will join Fox’s board and co-chair the newly created Fox Digital Platforms division, which includes Roku, Tubi, Fox One and Red Seat Ventures, alongside co-chair and CEO Paul Cheesbrough.
- Fox Corp. pledged that Roku will remain a leading open ecosystem, with no automatic exclusive or advantageous placement for Fox News or Fox One on a platform whose customer base exceeds 100 million households.
- Fox Corp. said the deal gives it an opportunity to expand free, ad-supported streaming through Tubi and the Roku Channel, and to increase its scale in digital video advertising and premium subscription distribution.
- Fox Corp. expects approximately $400 million in annualized cost synergies within two years of closing, a target that suggests layoffs are in the offing.
- Roku reported 23% revenue growth to $4.1 billion in the first nine months of 2026; in Q3, gross profit rose 24% to $649 million and net income increased more than sevenfold to $183 million.
- Fox Corp. set the deal at $160 per share in June, combining about $14.2 billion in cash with Fox Class A stock; shareholders of both companies approved it on Oct. 14.
Why it matters: Fox sees potential revenue upside and anticipates the combination will be accretive to free cash flow per share by the second full year after closing. For workers, the acquisition carries a $400 million annualized cost-synergy target within two years; the coverage says that target suggests layoffs are in the offing.
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