Fox announced on Monday that it plans to purchase streaming firm Roku via a mix of stock and cash in a transaction worth roughly $22 billion. The company noted that the merger would build a media and technology entity centered on two major shifts in video viewing: sustained interest in live sports and news plus the rise of streaming options.

Fox states that the agreement will establish the third-largest television company across the United States. This move merges Fox's news and sports networks plus its ad-supported streaming platform Tubi with Roku's connected TV system.

The pairing is expected to deliver broad audience access spanning traditional and streaming formats, according to Fox.

The transaction provides Fox with Roku's reach to 100 million households, enabling better ad targeting and reduced dependence on conventional distribution. Fox indicated the purchase offers expanded entry into the fast-growing connected TV space, especially for advertising and streaming subscriptions.

Fox CEO Lachlan Murdoch described the acquisition as a pivotal step for the firm.

"This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile," Lachlan said in a press release. "Roku pioneered streaming TV and scaled it into a leading CTV platform. Together, we intend to lead its next chapter."

Fox purchased Tubi for $440 million in 2020 amid peak rivalry in live streaming. The prior year, it introduced Fox One, its own direct-to-consumer streaming offering.

"I'm incredibly proud of what our team has built, and the combination with Fox is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers," said Roku founder and CEO Anthony Wood. "I couldn't be more excited about what we'll accomplish together."

The boards of both companies have approved the deal, which is slated to finalize in the first half of 2027. Fox noted it secured a $12 billion loan to support the purchase.