Fox to acquire Roku in $22 billion streaming bet
The deal values Roku at $160 a share in cash and stock, reshaping the media landscape.
The media company Fox (FOXA) agreed to acquire streaming platform Roku in a $22 billion cash-and-stock transaction, marking its largest strategic move to date in the shift to digital television. The deal, announced alongside fiscal fourth-quarter results, values Roku at $160 a share and combines two of the largest U.S. streaming ecosystems.
The transaction reflects Fox’s response to the accelerating migration of television audiences to streaming, where 48% of U.S. TV viewership now occurs, up from 25% in 2020. Fox said the acquisition would create a combined company with approximately 100 million global streaming households, leveraging Roku’s reach of over 100 million households, including more than half of all U.S. broadband homes.
Under the terms of the agreement, Roku shareholders will receive $96 in cash and 0.9693 Fox Class A shares for each Roku share, implying a total equity value of $25 billion. Fox shareholders are expected to own about 73% of the combined company, while Roku shareholders will hold the remaining 27%.
Fox said it expects the deal to be accretive to free cash flow per share by the second full year after closing, which is targeted for the first half of 2027. The company projected run-rate cost synergies of $400 million and additional revenue upside, though it acknowledged the transaction would increase pro forma net leverage to approximately 2.8 times last-twelve-months EBITDA, up from its current investment-grade balance sheet.
To fund the cash portion of the deal, Fox secured $12 billion in fully committed bridge financing. The company did not disclose fiscal fourth-quarter financial results, focusing instead on the strategic rationale and structure of the acquisition.
The acquisition positions Fox to compete more directly with larger streaming rivals, as the combined entity would control a significant share of U.S. streaming households. Fox said the deal would accelerate its transition from traditional broadcast to digital distribution, though it did not provide updated financial guidance for its standalone operations.