FOX to Acquire Roku in $22B Bet on Streaming and Connected TV
Fox Corporation has agreed to acquire streaming platform Roku in a cash-and-stock transaction valued at approximately $22 billion, marking one of the largest media deals in recent years and significantly expanding FOX’s presence in connected television and digital advertising.
Under the terms of the agreement, Roku shareholders will receive $160 per share, consisting of $96 in cash and 0.9693 shares of FOX Class A common stock for each Roku Class A and Class B share outstanding. The stock component is valued at $64 per Roku share based on FOX’s 10-day volume-weighted average share price through June 10.
The acquisition combines FOX’s portfolio of sports, news and entertainment programming, including the ad-supported streaming service Tubi, with Roku’s television operating system, The Roku Channel, proprietary data platform and direct relationship with more than 100 million streaming households worldwide.
“This is a defining moment for FOX, and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade,” said Lachlan K. Murdoch, Fox’s executive chair and CEO, adding that the deal should shift the company’s growth profile toward higher‑growth digital verticals. Roku founder, chairman and CEO Anthony Wood called the combination “an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively.”
Upon closing, existing FOX shareholders are expected to own approximately 73% of the combined company, with Roku shareholders holding the remaining 27%.
FOX said the transaction is expected to accelerate its digital strategy, become accretive to free cash flow per share by the second full year after closing and generate approximately $400 million in annualized cost synergies, with additional upside from revenue opportunities.
Roku founder and CEO Anthony Wood will remain involved with the combined company and join the FOX board of directors after the transaction closes.
FOX plans to finance the cash portion of the deal through a combination of cash on hand and new debt, supported by $12 billion in committed bridge financing from Morgan Stanley Senior Funding. The transaction is expected to close in the first half of 2027.
Allen & Company LLC is serving as lead financial advisor to Fox Corporation. Morgan Stanley & Co. LLC is also serving as a financial advisor to FOX and Morgan Stanley Senior Funding, Inc. is providing a committed $12 billion bridge financing facility. Goldman Sachs & Co. LLC is also serving as a financial advisor to FOX. Weil, Gotshal & Manges LLP is serving as legal counsel to FOX.
Qatalyst Partners is serving as exclusive financial advisor to Roku, and Goodwin Procter LLP is serving as legal counsel to Roku.
