Fox to acquire Roku in $22 billion deal

Fox Corporation has agreed to acquire streaming platform company Roku in a cash-and-stock deal that values Roku at approximately $22 billion. The agreement, announced on June 15, 2026, sets total consideration at $160 per Roku share. Each Roku share will be exchanged for $96 in cash and about 0.9693–0.97 shares of Fox Class A common stock. The transaction has been unanimously approved by the boards of directors of both Fox and Roku.

The companies expect the deal to close in the first half of calendar year 2027, subject to approvals by Fox and Roku shareholders as well as U.S. and certain non-U.S. regulatory clearances. Upon closing, existing Fox shareholders are projected to own roughly 73% of the combined company, with Roku shareholders owning about 27%. The companies say the combination will create the third-largest player in U.S. television by share of viewing.

To fund the cash portion of the consideration, Fox plans to use a mix of new debt and cash on hand. The company has secured $12.0 billion of fully committed bridge financing from Morgan Stanley (MS) to support the transaction. Fox expects pro-forma net leverage at close to be approximately 2.8 times, inclusive of 50% credit for expected run-rate cost synergies.

The combined company is targeting about $400 million of annual run-rate cost savings once integration is complete. Fox projects that the transaction will be accretive to free cash flow per share by the second full year after closing. These expectations are part of Fox’s financial rationale for pursuing the acquisition at the agreed enterprise value.

The acquisition will give Fox control of Roku’s streaming platform, including The Roku Channel, and access to first-party data and direct relationships with more than 100 million households. Roku’s business is heavily driven by advertising, which generated $613 million in revenue in the first quarter, up 27% year-on-year. The companies plan for Roku to continue to operate as an open, partner-friendly platform for content and distribution partners.

By combining Fox’s content and distribution footprint with Roku’s connected TV operating system and advertising capabilities, the companies aim to strengthen their position in the evolving television and streaming market. The ability to tap Roku’s large base of streaming households and advertising infrastructure is described as a key strategic benefit of the transaction for Fox.

Roku founder, chairman and CEO Anthony Wood will have an ongoing role at the combined company and is set to join the Fox board after the deal closes. Roku’s operations are expected to remain focused on maintaining an open platform approach, working with a wide range of partners across the streaming ecosystem.

On the day of the announcement, Fox shares fell about 8% in premarket trading, while Roku shares rose slightly. The mixed initial market reaction reflects investor reassessment of Fox’s balance sheet, integration plans and growth prospects as it moves to absorb Roku’s platform and advertising business.