Fox is buying Roku for $22 billion

NEW YORK (CNN) — Fox is acquiring Roku, the popular streaming TV platform, in a massive $22 billion deal, the companies announced Monday.

The transaction makes Fox a much more competitive streaming player, combining Fox’s sports, news and entertainment shows, as well its free Tubi streaming service, with Roku’s devices and popular services that reach 100 million people.

Fox has dabbled in streaming over the past few years — finally launching its Fox One competitor last August — but has lacked a serious streaming business with the ability to compete in a space dominated by YouTube, Netflix, Amazon, Disney+, HBO Max, Paramount+ and Peacock. With CNN parent company Warner Bros. Discovery receiving initial US regulatory approval to combine with Paramount, Fox’s purchase of Roku became more urgent.

According to Nielsen’s metrics, YouTube is by far the top-viewed entertainment platform with Netflix in second.

Combining Fox and Roku creates the “third-largest player in US television by share of viewing,” the companies said a press release. Together, they will control more than a 5% share.

“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 CEO Lachlan Murdoch. “Today, we ...