Fox Corporation and Roku 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.
The deal values Roku at approximately $22 billion in enterprise value, marking one of the largest media and technology transactions in recent memory.
Under the terms of the agreement, Roku shareholders will receive $96.00 in cash along with 0.9693 shares of Fox Class A common stock for each share they hold.
The transaction brings together Fox’s portfolio of sports, news, and entertainment content, including the Tubi streaming service, with Roku’s dominant connected TV platform and The Roku Channel.
Roku’s platform currently reaches more than 100 million global streaming households, giving Fox a direct pipeline to one of the largest audiences in the streaming industry.
Fox and Roku together aim to build a scaled next-generation media and technology company positioned at the intersection of live programming and the continued growth of streaming.
Upon closing, existing Fox shareholders are expected to own approximately 73% of the combined company, with Roku shareholders holding the remaining 27%.
Both companies’ boards have unanimously approved the transaction, signaling strong institutional confidence in the deal’s strategic rationale from both sides.
Fox expects the deal to be accretive to free cash flow per share by the second full year after closing and to generate approximately $400 million of run-rate cost synergies, with additional revenue upside anticipated.
To fund the cash portion of the transaction, Fox has secured $12.0 billion of fully committed bridge financing from Morgan Stanley Senior Funding, Inc., with pro forma net leverage expected to sit at approximately 2.8x.
Roku Founder, Chairman, and CEO Anthony Wood will retain an ongoing role at the combined company and will join the Fox Board of Directors following the close of the transaction.
The deal is expected to close in the first half of 2027, subject to regulatory and shareholder approvals, leaving months of scrutiny ahead for one of the most closely watched media mergers in years.
