Fox is buying its way deeper into the streaming interface.
The TV corporation is adding another free streaming platform to its roster with the $22 billion purchase of Roku. Announced on June 15, the deal combines Roku, which has 100 million subscribers on its ad-supported The Roku Channel video streaming service, with Fox’s Tubi, another ad-supported service with close to 100 million subscribers.
Fox also gains control of the leader in the smart TV device market, with 32% market share in the US connected TV market ahead of Amazon, Apple, and Samsung, according to Pixalate. This brings in a new revenue stream for Fox, as a key distribution platform for TV shows, movies, and streaming platforms, and could allow them to promote their own programming ahead of rivals.
Roku’s ad platform is the real cash cow
Roku may be best known for its connected TVs and streaming sticks, but those products accounted for less than a quarter of the company’s revenue in 2025.
Amazon, Google, and Xiaomi have flooded the market with cheap streaming sticks — for under $40 — making it hard for Roku to generate consistent revenue. The main segment, which brought in $4.1 billion in 2025, comes primarily from ads sold on The Roku Channel, as well as sponsored placements on the Roku interface.
This is what Fox is paying so much for, as ad-supported streaming platforms have grown rapidly over the last few years. Consumers are looking for cheaper ways to watch TV shows and movies, with Netflix, HBO Max, and Disney+ all introducing cheaper ad-supported subscription tiers. Roku and Tubi compete with YouTube, TikTok, and other freemium video services.
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Roku and Tubi to remain separate… for now
Even though The Roku Channel and Tubi are very similar, Fox has said it will not merge them.
“If you look at Tubi and the Roku channel together, they are incredibly complementary services,” Fox Corporation CEO Lachlan Murdoch said on an investor call, per The Hollywood Reporter. “There’s about a third overlap between the audience, between the two of them, so that they’re not identical audiences. Bringing the two of them together effectively triples the reach of the combined service.”
That said, sentiment can change quickly. When Disney originally acquired most of Hulu, it said the two platforms were complementary, but it has been itching ever since to fully take over Hulu and merge the two to create a streaming powerhouse. The same may happen to The Roku Channel and Tubi over time.
Even though it is unlikely to face the same regulatory heat as the Warner Bros, Netflix, and Paramount buyout drama, especially in the current political climate, there will still be a period for both sides to file antitrust and competition filings. With Roku holding a dominant position as a streaming distributor, Fox may need to sign agreements allowing rivals to be featured on the platform and to retain some access to Roku’s physical remote control buttons.
Fox expects to close the deal in the first half of 2027.
Related reading: Google made a similarly massive bet on cybersecurity earlier this year, agreeing to acquire cloud security firm Wiz for $32 billion in the largest tech deal in Israeli history.
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