Fox to Acquire Roku in a $22 Billion Deal, Revolutionizing the US TV Landscape

Media giant Fox is buying streaming firm Roku in a deal that will create the third-largest player in US TV by share of viewing. This strategic move is a bet on the growth of streaming, which is revolutionizing the way we consume TV content.

Fox's move is a bet that combining streaming with its news and sports offering will leave it in a strong position as TV audiences continues to shift online. According to research firm Park Associates, Roku is the biggest streaming platform for smart TVs in the US, running on more than a quarter of internet-connected devices.

The offer of $160 per share, made up of cash and stock, values Roku at $22 billion. Fox chief executive Lachlan Murdoch believes this deal is a defining moment for his company and a natural extension of its focused strategy to execute for nearly a decade.

Under the takeover, Fox will combine its streaming service, Tubi, with the Roku Channel to rival Netflix and Amazon as one of the biggest streaming services in the US. This move comes as advertisers are spending increasing amounts on streaming platforms, with consultancy Madison and Wall predicting $20 billion of spending by 2029.

Fox's and Roku's scale after the takeover is expected to help the company compete for advertisers' spending. The deal also reflects the shift away from set viewing times for hit TV shows in favor of streaming instead. However, it stresses "the enduring primacy of live sports and news".

A government spokesman tells the BBC that the current offer "does not do enough to protect consumers or the environment". The new target hasn't yet been decided, with different numbers under consideration.