Fox Corporation has announced a landmark $22 billion acquisition of streaming platform Roku, a move designed to strengthen the media giant’s position in the increasingly competitive streaming market as it faces mounting pressure over the future cost of NFL broadcasting rights.
The deal, unveiled on Monday, remains subject to approval from shareholders and regulatory authorities and is expected to close during the first half of 2027.
Fox plans to integrate its existing content portfolio, including the free streaming service Tubi, with Roku’s distribution platform. According to Nielsen data cited by the company, the combined reach of Fox, Tubi and Roku would account for approximately 5.5% of the U.S. television market, narrowly surpassing Disney’s 5.3% share.
“The discoverability of our sports rights can really be enhanced through Roku’s distribution and promotion via the Roku home screen,” Fox CEO Lachlan Murdoch said during a conference call with investors.
NFL negotiations loom large
The acquisition comes at a critical time for Fox, which is currently renegotiating its media agreements with the NFL. The American football league is reportedly seeking substantial increases in rights payments from its broadcast partners.
Fox currently pays around $2.25 billion annually for its NFL media rights and has previously indicated that it may need to “rebalance” parts of its sports portfolio to accommodate rising costs.
The debate surrounding NFL television contracts has also reached the political arena in Washington.
“The Department of Justice investigation, as well as this hearing, appears designed for one purpose only: to help Mr. Murdoch secure a better broadcasting contract for Fox,” said Jamie Raskin, a Democratic congressman representing Maryland.
Investors react cautiously
Despite Fox’s ambitions in streaming, investors responded negatively to the announcement. Shares of the company fell by more than 15% following news of the acquisition, reflecting concerns about potential share dilution and the financial implications of such a major transaction.
If approved, the purchase would mark one of the largest media deals in recent years and signal Fox’s determination to build a stronger direct-to-consumer ecosystem while preparing for an increasingly expensive battle over premium sports rights.