Fox Corporation acquired streaming platform Roku today in a cash-and-stock deal valued at $22 billion. The merger combines Fox’s live sports and news library with a connected-TV operating system reaching 100 million households globally.
The combined company will integrate the Tubi service with The Roku Channel to scale its ad-supported streaming business. This ecosystem leverages Roku’s advertising technology to compete directly against YouTube, Disney, and Netflix.
Fox Corporation shares dropped 15.2% in pre-market trading following the announcement. Investors cited the high acquisition cost and potential integration challenges as primary concerns regarding the deal.