It is one of the most common platforms used by U.S. consumers to access live and on-demand streaming video platforms ranging from Netflix, Hulu, HBO Max and Prime Video to free ad-supported streaming television platforms including Pluto TV and Tubi.
Now, it is poised to become a wholly owned unit of the Fox Corporation.
In an announcement distributed prior to Monday’s Opening Bell for American financial markets, Fox Corp. shared that it intends to acquire Nasdaq-traded Roku Inc.
A definitive agreement will see FOX purchase Roku for $160 per share in a combination of cash and FOX Class A common stock, valuing Roku at approximately $22 billion in enterprise value.
For Fox, the deal combines FOX’s sports, news, and entertainment content and its fast-growing Tubi service with The Roku Channel.
“Together, FOX and Roku will create a scaled next-generation media and technology company positioned at the intersection of two of the most important forces reshaping video consumption: the enduring primacy of live sports and news, and the continued rise of streaming,” the companies shared.
STAYING OPEN AND ‘PARTNER FRIENDLY’
FOX and Roku noted in their transaction announcement that they remain committed to continuing to operate Roku “as an open, partner-friendly platform,” and to “the continued ubiquitous distribution of FOX content.”
When it comes to eyeballs and consumption, FOX and Roku together on a pro forma basis creates the third-largest player in U.S. television by share of viewing, the companies note; this includes content distribution via broadcast, cable, local, and streaming.
“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 Corporation Executive Chair and CEO Lachlan Murdoch. He added that adding Roku “will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile. And we are executing this acquisition from a position of financial strength – maintaining our investment grade balance sheet while providing our shareholders with an uninterrupted return of capital program in the form of share buybacks and dividends. Roku pioneered streaming TV and scaled it into a leading CTV platform. Together, we intend to lead its next chapter.”
For Roku founder/Chairman and CEO Anthony Wood, “The combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster, and innovate more aggressively for viewers, partners, and advertisers. That’s why our Board of Directors unanimously determined after concluding its strategic review process that this transaction offers a significant premium to Roku shareholders while also providing them with the opportunity to participate in the compelling future upside of the combined company. I couldn’t be more excited about what we’ll accomplish together.”
Wood will have an ongoing role at the combined company and will join the FOX Board of Directors following the close of the transaction.
Transaction Details
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FOX is acquiring Roku in a cash-and-stock transaction valued at $160.00 per ROKU share.
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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.
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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.
Upon closing, existing FOX shareholders are expected to own approximately 73% of the combined company and Roku shareholders approximately 27%. The transaction has been unanimously approved by the Boards of Directors of both companies. “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 said.
Additionally, FOX expects to fund the cash portion of the transaction consideration with a combination of new debt and cash on hand.
Importantly, FOX has obtained $12 billion of fully committed bridge financing from Morgan Stanley Senior Funding Inc. At closing, the company expects pro forma net leverage to be approximately 2.8x, inclusive of 50% credit for run-rate cost synergies.
Additional detail on financing terms will be included in the companies’ required filings with the Securities and Exchange Commission.
The transaction is expected to close in the first half of calendar year 2027.
Advisors
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Allen & Company LLC is serving as lead financial advisor to Fox Corporation.
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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.
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Goldman Sachs & Co. LLC is also serving as a financial advisor to FOX.
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Weil, Gotshal & Manges LLP is serving as legal counsel to FOX.
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Qatalyst Partners is serving as exclusive financial advisor to Roku, and Goodwin Procter LLP is serving as legal counsel to Roku.
