Fox Corporation to Acquire Roku in $22 Billion Deal

Fox Corporation is acquiring Roku in a deal that values the streaming platform at approximately $22 billion, the companies confirmed Monday.



The acquisition combines Fox's portfolio of live sports, news, and entertainment assets, including its free ad-supported streaming service Tubi, with Roku's connected TV platform, The Roku Channel, and its direct relationship with more than 100 million global streaming households. Roku is also one of Apple's largest television distribution partners, offering access to the Apple TV app and service across its streaming platform and devices.


Fox and Roku said they intend to continue operating Roku as an open, partner-friendly platform while maintaining broad distribution of Fox content. Together, the companies say they will create a scaled media and technology business positioned at the intersection of live sports and news programming and the continued growth of streaming.

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 share. When the deal closes, existing Fox shareholders are expected to own approximately 73 percent of the combined company, with Roku shareholders holding the remaining 27 percent. The boards of both companies have unanimously approved the acquisition.

Fox said the combination would make the company the third-largest television platform in the United States by share of viewing. The company believes Roku's first-party data, platform technology, consumer interface, and direct viewer relationships will strengthen its position in the fast-growing connected TV advertising and subscription market while improving content discovery and engagement.

"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 Fox Executive Chair and CEO Lachlan Murdoch. "Roku pioneered streaming TV and scaled it into a leading CTV platform. Together, we intend to lead its next chapter."


Roku founder and CEO Anthony Wood will have an ongoing role with the combined company and will join Fox's board following the close. "The combination with Fox is an extraordinary opportunity to accelerate our vision, scale faster, and innovate more aggressively for viewers, partners, and advertisers," Wood said.

Fox plans to fund the cash portion of the transaction through a combination of cash on hand and new debt, including a $12 billion bridge financing facility from Morgan Stanley Senior Funding. The company expects the deal to be accretive to free cash flow per share by the second full year after closing and projects approximately $400 million in annualized cost synergies, along with additional revenue opportunities.

The acquisition remains subject to shareholder and regulatory approvals and is expected to close during the first half of calendar year 2027.

You can purchase a Roku Streaming Stick 4K with HDR and Dolby Vision support for $46.