Fox has announced the acquisition of Roku for $22 billion in a combination of cash and stock. The deal, which is pending regulatory approval and not expected to close until 2027, marks a significant shift for Fox as it seeks to bolster its position in the streaming market. Fox CEO Lachlan Murdoch stated during an investor call that the company expects to keep Tubi and The Roku Channel as separate services, noting that they serve different consumer needs and have complementary viewing audiences. The acquisition follows a period where Fox largely observed the aggressive spending of competitors like Netflix, Disney, and Amazon on in-house streaming platforms. Instead, Fox focused on niche streaming and strategic acquisitions, such as its 2020 purchase of Tubi for $440 million. According to Sensor Tower data, Tubi currently holds the fourth-largest ad spend among U.S. Streaming platforms. By adding Roku to its portfolio, Fox aims to combine its content with a major distribution platform. Industry analysts suggest the move could transform Fox from a content owner into a vertically integrated media platform that controls content, distribution, advertising, and consumer discovery. The deal provides Fox with access to Roku’s operating system and proprietary first-party data. Also, the combination of the Roku app and Tubi would represent approximately 50 million monthly active users in the U.S., which would surpass Disney+ in share and trail only Netflix in streaming-entertainment app usage. Fox expects that the combined reach of Fox and The Roku Channel will allow it to leapfrog NBCUniversal/Versant and potentially Netflix in total TV viewing on Nielsen’s Media Distributor Gauge. The company also intends to use Roku’s global reach to prominently deploy its other services, including Fox One, Fox Nation, and Tubi.