What Happened to Fox Corporation?

Since its formation in 2019 following the sale of 21st Century Fox's entertainment assets to Disney, Fox Corporation has carved out a distinct strategy centered on live news, sports, and ad-supported streaming. This focus has allowed the company to avoid the costly content arms race of premium subscription streaming services, instead leveraging its strong existing brands like FOX News Media and FOX Sports. The acquisition of Tubi in 2020 was an early indicator of this strategy, and the platform has since grown significantly, reporting its most streamed and highest revenue quarter ever in fiscal Q4 2026, ending the year with 110 million monthly active users.

A pivotal development in Fox's recent history is the announcement on June 15, 2026, of its agreement to acquire Roku, Inc. for approximately $22 billion in a cash-and-stock deal. This acquisition represents a major strategic shift, aiming to combine Fox's content production with Roku's dominant connected-TV platform, which reaches over 100 million streaming households globally. The rationale behind this move is to gain greater control over content distribution, advertising, and viewer data as traditional television viewership continues to decline. The deal is currently under review by the U.S. Department of Justice, with Fox agreeing to an extension of the review period, and is anticipated to close in the first half of calendar year 2027.

Financially, Fox Corporation has demonstrated robust performance, reporting record full-year fiscal 2026 revenue of $17.13 billion and adjusted EBITDA of $3.91 billion. This strong performance was significantly boosted by the broadcast of the FIFA Men's World Cup in fiscal 2026, which drove a 78% increase in advertising revenue for the fourth quarter. The company also successfully launched its direct-to-consumer streaming service, FOX One, in May 2025, which has been performing ahead of expectations with incremental subscribers and low churn.

However, Fox Corporation continues to navigate significant legal challenges. The Smartmatic defamation lawsuit, stemming from its 2020 election coverage, remains ongoing, with a trial not expected until late 2026 at the earliest. A related shareholder derivative lawsuit, alleging that Fox's leadership breached fiduciary duties by prioritizing profits over legal compliance, saw a motion to dismiss denied in December 2024, indicating potential liability for senior officers, including Rupert and Lachlan Murdoch. Additionally, the Media and Democracy Project filed a mandamus petition in July 2026 to compel the FCC to act on a long-pending challenge to the license renewal of a Fox-owned television station, citing the company's dissemination of false claims.

As of August 11, 2026, Fox Corporation is in a transformative phase. Its core strategy of focusing on live content and ad-supported streaming is being amplified by the pending Roku acquisition, which, if approved, will significantly expand its reach and advertising capabilities. The company is also preparing for a record midterm political advertising cycle in fiscal 2027 and has decided to maintain its current NFL media rights deal until the 2029-30 opt-out, resisting early renegotiation attempts by the league. This period is marked by both strategic expansion and ongoing legal and regulatory scrutiny, shaping the future trajectory of the media giant.