Fox will take TVs into more than 100 million homes worldwide. On Monday, Fox announced it was acquiring Roku, a streaming middleman that acts as a portal for viewers to access services like Netflix, Disney Plus, Hulu, and more. The $22 billion deal may not replace Roku’s purple interface, but it could let Fox control your data behind the screen.
Speaking to investors, Fox CEO Lachlan Murdoch said the plan is to keep the two companies separate. Fox aims to grow its business by adding Fox Sports, news content, and local channels to Roku – one of the most popular streaming devices and smart TV platforms. “I would expect that we can grow our audience in the US through a combination of Roku’s technology, the Roku platform, the best content on the Roku channel, and the content that Fox brings,” Murdoch said.
Roku founder and CEO Anthony Wood, who will have a role in the combined company after the deal closes in 2027, emphasized the idea, saying that the streaming platform will include Fox’s content on its home screen, currently showing a large tent ad, and a carousel full of suggested shows and movies. “A lot of things on the home screen are personalized in the sense that we decide what to show the customer based on what they’re likely to watch, what they’re likely to buy,” Wood told investors. “Having multiple high-grossing sites – and being able to decide when to advertise and when not to advertise – will lead to more revenue generated from the home screen.”
“Fox is getting a lot out of this deal”
The multibillion-dollar deal may not lead to an overt rebranding of Roku, but it may raise alarm bells for people paying attention to the latest wave of media buyouts that have put the Trump-friendly Ellison family in charge of Warner Bros. Discovery, Paramount, CBS News, and, to some extent, TikTok. Lachlan Murdoch, who took over Fox and the Trump-aligned news network last year, is also an owner The Wall Street Journal parent company News Corp. “In the Trump era, these deals have huge political implications that deserve attention,” said Jeff Chester, executive director of the Center for Digital Democracy, a nonprofit digital and consumer advocacy organization. The Verge. “Perhaps people will get the message that this is not just a media deal, this is the political affiliation of America’s media assets in the friendly hands of MAGA.”
While Roku is known for its line of streaming sticks and affordable TVs, it makes most of its money from selling ads around the site and the money it earns when people sign up for the premium streaming service through its interface. In April, Roku provided a breakdown of how much it earns in both categories for the first time. It reported $613 million in advertising revenue, while subscriptions earned $519 million in the quarter. “Fox is getting a lot out of this deal, in terms of distribution,” said Dan Rayburn, a media analyst. The Vergeadding that Fox will also gain “insights from all the data of what people are watching.”
Roku offers a limited amount of original content through The Roku Channel, its free, ad-supported (FAST) service, which competes directly with Fox’s FAST service, Tubi. Despite the similarities between the two services, Murdoch told investors that one-third of Tubi’s viewership overlaps with people who watch Roku Channel. “Bring them both together, [and it] it triples the reach of the combined service,” said Murdoch.” “It’s too early to say, but our full expectation is to keep the services separate. They serve consumers or viewers in different ways.”
Roku has started moving into paid subscriptions, too, with the acquisition of the $6.99-a-month Frndly streaming service, followed by the launch of Howdy, a $2.99-a-month ad-free streaming subscription. Meanwhile, Fox recently launched its own Fox One streaming service and has a deal with Hulu to stream shows like Family Guy again Maskandi singer on the platform. Through this agreement, Roku can gain access to premium content to include within its services.
“I wouldn’t be surprised if Roku is now like, ‘Okay, now let’s look at some content that we think has worked well on our platform, and we’re supported to do it,'” Rayburn said.
As we saw with Paramount’s acquisition of Warner Bros. Discovery, Fox may not see much pushback from corporate regulators. “In the US … I don’t think there will be a regulatory review,” Rayburn said, while questioning an investigation from the European Union, where Roku and Fox have less leverage. That exchange of information from regulators could pave the way for a deal to close next year.
