Fox to Acquire Roku for $22 Billion in Strategic Streaming Merger

Deal Structure and Valuation

Fox Corporation and Roku announced they have entered into a definitive agreement under which FOX will acquire Roku for $160.00 per share in a combination of cash and FOX Class A common stock, valuing Roku at approximately $22 billion in enterprise value. FOX will pay $96.00 in cash and 0.9693 shares of FOX Class A common stock for each Roku Class A and Class B share outstanding immediately prior to the effective time of the merger.

Strategic Rationale and Market Position

The transaction combines FOX's leading sports, news and entertainment content and the Tubi service, with Roku's leading connected TV platform, The Roku Channel, first-party data and direct relationship with more than 100 million global streaming households. The deal allows Fox to sell advertising on Roku's home page, including for Fox's own content, as well as take a cut of all the subscriptions for channels available on the app.

Financial Terms and Timeline

The stock consideration represents $64.00 per ROKU share based on a reference price of $66.03 per share, the 10-day volume-weighted average price of FOX Class A common stock as of June 10, 2026. The deal will include roughly $14.6bn in cash, with the rest paid in stock, adding about $8.3bn in debt to Fox's balance sheet. The companies expect the deal to close in the first half of calendar year 2027.

Synergies and Shareholder Response

The transaction is expected to strengthen FOX's long-term growth profile, accelerate its digital strategy, be accretive to free cash flow per share by the second full year after closing, and achieve approximately $400 million of run-rate cost synergies with additional revenue upside. Fox stock traded down 16% on Monday, hitting a 52-week low. Shares fell another 4% on Tuesday.