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As Roku’s Merger With Fox Clears More Hurdles, Streaming Provider Delivers Strong Q3 Results
Roku reported stronger than expected third-quarter results as its proposed $22 billion merger with Fox continues through regulatory review. The results highlight growth in Roku’s streaming and advertising businesses while the deal, expected to close in the first half of 2027, awaits US antitrust review.
Revenue for July to September rose 24% year on year to $1.5 billion, and earnings per share increased to $1.20 from 16 cents a year earlier. Streaming hours grew 9% to 39.9 billion; advertising revenue climbed 23% to $727.4 million, and Roku said its own TVs represented nearly 8% of US TV sales by volume. Fox chief executive Lachlan Murdoch said the merger had cleared major regulatory hurdles outside the US and received shareholder approval.
In short
- Roku’s third-quarter revenue rose 24% to $1.5 billion.
- Earnings per share reached $1.20, up from 16 cents.
- Fox merger awaits US antitrust review, with a 2027 close expected.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters could argue the merger would combine Roku’s large streaming platform and advertising business with Fox’s content and media operations, creating a stronger competitor in a market dominated by major technology firms. Roku’s latest growth and shareholder approval suggest the companies see a credible commercial opportunity, while regulatory review can address concerns about competition before the deal closes.
The case against
Critics could argue that bringing a major platform and advertising business together with a large media company could increase market power, limiting competition for advertisers, audiences or content partners. Strong results do not resolve those risks, and US antitrust review matters because the merger’s effects on choice, prices and access may not be fully captured by the companies’ projected benefits.
Explained simply
Roku is a US company that makes streaming devices and smart TVs, and also sells advertising on its streaming platform. Its business depends on attracting viewers and advertisers as people watch more television through internet services.
Fox is a media company led by chief executive Lachlan Murdoch. The proposed merger would bring Roku and Fox together in a deal valued at $22 billion, subject to regulatory approval, including a review by US antitrust authorities.
The deal matters because regulators assess whether a merger could reduce competition or harm consumers. Shareholder approval and progress through reviews outside the US are steps in the process, but they do not guarantee that the merger will go ahead.
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