Fox Acquires Roku for $22 Billion

*Fox gains Roku's devices and platform, with plans to favor its own networks and Tubi in the combined service.*

Fox announced it will buy Roku outright in a deal valued at $22 billion. The purchase gives Fox control of Roku's hardware, smart TV software, and The Roku Channel while promising heavier promotion of Fox content once the transaction closes.

The two companies described the combination as a way to merge Fox's linear networks and Tubi streaming service with Roku's installed base of devices and operating system. They stated in a joint release that the result would rank third in U.S. television viewing share.

Roku will continue to operate as a distinct unit inside Fox, according to the announcement. The companies did not disclose regulatory conditions or an expected closing date.

No independent reactions from Roku shareholders or competing platforms appear in the reporting so far. The Wall Street Journal and Engadget both carried the same $22 billion figure first reported by Fox.

The deal shifts Roku from an independent platform company into a content owner's distribution arm. Engineers and product teams at Roku now answer to a parent whose primary interest is lifting its own linear and streaming properties, which narrows the scope for neutral device strategy and third-party carriage negotiations.

Sources

• The Verge
• Hacker News (front page)
• Engadget

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