Fox to Buy Roku in $22 Billion Cash-and-Stock Deal
The combination unites Fox’s live sports and news content with Roku’s 100-million-household streaming platform to create a scaled media and technology company.
**Fox Corporation (FOXA) agreed to acquire Roku, Inc. in a $22 billion enterprise-value transaction** that would pair the owner of Fox News and Tubi with the largest U.S. connected-TV platform.
The deal values Roku at $160.00 a share, consisting of $96.00 in cash and 0.9693 shares of Fox Class A common stock for each Roku Class A and Class B share. The stock component is based on a $66.03 reference price, the 10-day volume-weighted average of Fox’s stock as of June 10, 2026. Upon closing, Fox shareholders are expected to own approximately 73% of the combined company, with Roku shareholders holding the remaining 27%. The transaction is subject to approval by both companies’ shareholders and regulatory clearances, with an expected close in the first half of 2027.
Fox framed the acquisition as a transformative step in its digital strategy, positioning the combined company at the intersection of live sports, news, 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 Lachlan K. Murdoch, Executive Chair and Chief Executive Officer of Fox Corporation. "Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it."
Roku, which pioneered streaming on TV, operates the leading U.S. connected-TV platform by hours streamed, reaching more than 100 million global households. The company’s platform includes The Roku Channel, a free ad-supported streaming service, and a direct relationship with viewers that Fox said would enhance content discovery and engagement. The combined company would become the third-largest player in U.S. television by share of viewing, spanning broadcast, cable, and streaming.
The deal follows a series of strategic moves by Fox to expand its streaming footprint, including the 2020 acquisition of Tubi, which has since grown into one of the largest free ad-supported streaming services. Fox said the Roku acquisition would accelerate its shift into high-growth connected-TV verticals, including advertising and subscriptions, while maintaining its investment-grade balance sheet and shareholder capital-return program. The company expects the transaction to be accretive to free cash flow per share by the second full year after closing and to generate approximately $400 million in run-rate cost synergies.
Fox plans to fund the cash portion of the deal with a combination of new debt and cash on hand, including a $12 billion committed bridge financing facility from Morgan Stanley Senior Funding. Pro forma net leverage at closing is expected to be approximately 2.8x, inclusive of 50% credit for run-rate cost synergies. Roku founder and CEO Anthony Wood will join Fox’s board and have an ongoing role at the combined company.