Fox Corporation is in advanced discussions to acquire Roku Inc., the streaming platform and device maker, in a deal that could be valued at more than $10 billion, according to sources familiar with the matter.
Strategic Move to Strengthen Digital Footprint
The potential acquisition comes as traditional media companies seek to bolster their streaming capabilities and compete with dominant players like Netflix, Amazon, and Disney. By acquiring Roku, Fox would gain a direct-to-consumer platform with over 80 million active accounts, as well as a leading operating system for smart TVs.
Roku's platform is known for its user-friendly interface and extensive channel lineup, making it a popular choice for cord-cutters. Fox already has a presence on Roku through its Fox Now app and other services, but owning the platform would give the company greater control over distribution and advertising.
Details of the Deal
The talks are ongoing and may not result in a deal, the sources cautioned. Fox has reportedly been working with financial advisors to structure the acquisition, which would be one of the largest in the streaming space. Roku's market capitalization currently stands at around $12 billion, but a deal could include a premium for shareholders.
Fox's interest in Roku has been rumored for months, but the timing of the negotiations suggests a renewed urgency as the streaming wars intensify. The company has been actively investing in its digital properties, including Tubi, a free ad-supported streaming service it acquired in 2020 for $440 million.
Industry Implications
If completed, the acquisition would reshape the streaming landscape, giving Fox a powerful platform to promote its content and sell targeted advertising. It would also provide Roku with the resources of a major media conglomerate, potentially accelerating its international expansion and innovation.
However, the deal could face regulatory scrutiny, particularly regarding data privacy and market competition. Roku's operating system is used in millions of smart TVs, and its advertising business relies on viewer data. Fox would need to navigate these issues carefully.
Neither Fox nor Roku have commented on the reports.
