Fox to buy Roku streaming firm in $22bn deal

Media giant Fox is buying streaming firm Roku in a deal the companies say will create the third largest player in US TV by share of viewing.

Fox's move is being seen as a bet that combining streaming with its news and sport offering will leave it in a strong position as TV audiences move online.

The offer of $160 per share, made up of cash and stock, values Roku at $22bn (£16bn).

"This is a defining moment for Fox, and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade," said Fox chief executive Lachlan Murdoch.

"In 2019, we reoriented the company around live news and sports. In 2020, we acquired Tubi and under our stewardship it has become one of the most successful businesses in streaming.

"Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it."

Roku is the biggest streaming platform for smart TVs in the US, running on more than a quarter of internet-connected devices, according to research firm Park Associates.

Globally, more than 100 million households stream with Roku.

Its main rivals include Amazon's Fire TV, Google TV and Chromecast, Apple TV and Tizen.

Roku also has a streaming service for films, TV shows and live news, the Roku Channel. Under the takeover, this will combine with Fox's own streaming service, Tubi, to rival Netflix and Amazon as one of the biggest streaming services in the US.

Announcing the deal, Fox highlighted the shift away from set viewing times for hit TV shows in favour of streaming instead. But it stressed "the enduring primacy of live sports and news".