Fox inks $22B cash-and-stock deal to acquire streaming platform Roku

Fox Corporation has signed a definitive agreement to acquire Roku in a cash-and-stock transaction that values the streaming platform at approximately $22 billion in enterprise value. Under the terms, Roku shareholders will receive $160.00 per share, consisting of $96.00 in cash and 0.9693 shares of Fox Class A common stock for each Roku Class A and Class B share. The consideration implies an enterprise value of roughly $22 billion for Roku, with Fox funding the cash portion through a mix of new debt and cash on hand, backed by $12 billion of fully committed bridge financing. Upon closing, existing Fox shareholders are expected to own about 73% of the combined company, while Roku shareholders will hold approximately 27%. The transaction has been unanimously approved by the boards of both companies and is expected to close in the first half of 2027, subject to shareholder and regulatory approvals.

The deal will combine Fox’s portfolio of sports, news and entertainment assets, including its free, ad-supported streaming service Tubi, with Roku’s connected TV operating system, The Roku Channel, and direct relationships with more than 100 million global streaming households. Fox projects around $400 million in run-rate cost synergies and expects the transaction to be accretive to free cash flow per share by the second full year after closing. Roku will continue to operate as an open, partner-friendly platform, and founder CEO Anthony Wood is expected to retain a key leadership role and join the Fox board after completion. By acquiring Roku, Fox aims to expand its reach in connected TV, strengthen its position in advertising and streaming distribution, and create one of the largest U.S. TV viewing platforms by share of viewing time.