What Could Fox’s New Roku Merger Mean for the Future of Tubi?

On Monday, Roku announced it will be acquired by Fox Corporation, a move that, combined with Fox’s ownership of Tubi, could fundamentally alter the entertainment landscape. According to the Roku press release, the transaction consists of a mix of stock and cash that is valued at $22 billion.

In 2020, Fox acquired Tubi for $440 million. It is free to use and relies on advertising revenue to support its business model. This April, Tubi added over 600 titles to its streaming service from major studios like Disney and Lionsgate.

Lachlan K. Murdoch, the CEO of Fox, said in the press release, “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.”

The Roku Channel is another free ad-supported streaming television (FAST) service, with a large catalog of entertainment. In an investor call, Murdoch said the intention is to keep the services “separate.” However, this deal will unite two of the dominant platforms for budget-conscious consumers. 

Whether or not this separation will hold is anyone’s guess. The Disney+ and Hulu merger recently set a precedent where Disney ultimately decided to “fully integrate” Hulu into its platform. 

Fox also operates its direct-to-consumer service Fox One, which includes content from the Fox News Channel and Fox Nation. Fox is rooted in its traditional cable television broadcasting, and this move signals a clear shift to future-proof the company for the age of streaming.

Two months ago, Roku announced that it reached 100 million streaming households worldwide, and its devices are used by more than half of U.S. broadband households.

In the last decade, cable subscriptions have plummeted, and devices such as the Roku stick have become the “modern cable box.” By controlling both streaming platforms and the devices themselves, Fox now has access to a much larger audience.

A few weeks ago, Roku overhauled its home page to be more personalized by incorporating recommendations curated by artificial intelligence. With its iconic screensaver and access to user data, Roku can provide Fox an easy gateway to promote its content to consumers.

Another factor to consider is the sports industry. With the FIFA World Cup taking place in the U.S. this year, Tubi has the rights to broadcast full matches, highlight and reaction videos, as well as documentaries surrounding the world of soccer. The Roku Channel provides access to X Games and Formula E, which are a welcome addition considering Fox Sports’ interests.

This merger is part of a larger trend within the streaming industry, igniting concerns of monopolization and firing up antitrust lawsuits. Just days ago, Paramount Skydance acquired Warner Bros. Discovery. The Department of Justice’s approval of this $111 billion deal will bring CNN and HBO Max under one umbrella.

A slew of unanswered questions remain until the deal is finalized in early 2027. To what extent will Tubi be consolidated with Fox’s other properties? What will the FAST model look like going forward? Can mergers bring benefits, or will consumers pay the price of profit?

We haven’t seen the final episode of the streaming wars. Yet.