The landscape of streaming TV shifted Monday with the announcement that Fox Broadcasting is set to acquire Roku. What will the implications of this $22 billion deal be for the average television viewer?
In my latest video, I dive into the details the two companies released during an investor call.
Roku’s current position in the market is a primary driver for this acquisition. The company currently accounts for 44% of total hours spent viewing connected TV content by brand in the United States. This dominance is not just limited to their standalone streaming sticks but extends to the numerous television sets that use the Roku operating system.
Over the last year, Roku reported approximately $5 billion in revenue, with advertising accounting for half of that figure. The business has transitioned away from hardware, which now represents only about 11% of their revenue, toward a model built on ad sales, data collection for targeted marketing, and a share of subscription fees from third-party services like Netflix.
For Fox, the acquisition provides a path to the top tier of the streaming market. By combining its existing viewership with the Roku Channel, Fox moves into a competitive position alongside industry leaders, trailing only YouTube in terms of market share and gaining ground on Netflix and Paramount. The company expects significant growth in both connected TV advertising and streaming subscriptions through this integrated platform.
Based on the details provided in the investor call, users should expect noticeable changes to the Roku interface. One of the key shifts involves the promotion of Fox-owned content and properties. The current “top picks” and algorithmic recommendations will likely favor Fox programming over other partners. The sports section is also expected to feature a heavier concentration of Fox Sports content. There is a possibility that the traditional grid of apps, which many users prefer for its simplicity, may be moved further down the screen to make room for these promoted recommendations and additional advertising spaces.
While Fox representatives stated they intend to maintain a level of “neutrality” toward other providers like Disney—partly because Roku earns revenue from selling those subscriptions—the emphasis on organic-looking Fox recommendations suggests a more curated experience. The core functionality of the devices is expected to remain intact, as the value of Roku has always depended on its ability to host a wide variety of streaming services. However, the path a user takes to find their preferred apps is likely to require navigating around Fox’s priorities.
The acquisition is structured as a mix of 60% cash and 40% stock, valuing Roku at $160 per share. Once the deal is finalized, Fox shareholders will own 73% of the combined entity, while Roku shareholders will hold the remaining 27%. Anthony Wood, the founder of Roku who previously established ReplayTV, is slated to remain on the board.
The deal still requires approval from shareholders and government regulators. with the companies anticipating the deal closing sometime in 2027. Watching how the interface evolves as we approach the closing date will provide the best indication of what the future of this hardware will look like in a Fox-owned ecosystem.