Mumbai: Fox Corporation has agreed to acquire streaming platform Roku in a cash-and-stock transaction valued at approximately $22 billion, a move that significantly expands the media company’s footprint in connected television, advertising technology, and streaming.
The transaction, unanimously approved by the boards of both companies, will combine Fox’s portfolio of sports, news, and entertainment assets—including Tubi—with Roku’s streaming platform, advertising capabilities, and direct access to more than 100 million streaming households worldwide.
Under the terms of the agreement, Roku shareholders will receive $160 per share, comprising $96 in cash and 0.9693 shares of Fox Class A common stock. Following the completion of the transaction, Fox shareholders are expected to own roughly 73% of the combined entity, while Roku shareholders will hold the remaining 27%.
Fox said the merger will create one of the largest television and streaming ecosystems in the United States, spanning broadcast, cable, local television, and connected TV platforms. On a pro forma basis, the combined company is expected to rank as the third-largest player in U.S. television by viewing share.
The acquisition marks the next stage in Fox’s digital transformation strategy. Since reshaping its business around live sports and news following the 2019 Disney asset sale, the company has steadily expanded its streaming ambitions, including the acquisition of Tubi in 2020. Fox believes Roku’s platform technology, user interface, advertising infrastructure, and consumer relationships will strengthen audience engagement and content discovery across its properties.
Lachlan K. Murdoch, Executive Chair and Chief Executive Officer of Fox, described the transaction as a natural evolution of the company’s long-term strategy, bringing together premium live content with one of the world’s largest connected TV platforms.
Roku Founder and CEO Anthony Wood said the deal followed a strategic review process conducted by the company’s board. He noted that the transaction delivers a significant premium to shareholders while allowing them to participate in the future growth of the combined business. Wood will continue to play a role in the organization and is expected to join Fox’s board after the deal closes.
Fox expects the acquisition to enhance its long-term growth prospects and accelerate its expansion in streaming subscriptions and digital advertising. The company projects approximately $400 million in annualized cost synergies, along with additional revenue opportunities. It also expects the transaction to become accretive to free cash flow per share by the second full year following completion.
To finance the cash component of the deal, Fox will use a combination of existing cash reserves and new debt financing. Morgan Stanley has provided $12 billion in fully committed bridge financing. Upon closing, Fox expects net leverage of approximately 2.8 times, while maintaining its investment-grade credit profile and continuing its shareholder capital return program.
The companies emphasized that Roku will continue to operate as an open platform serving a broad ecosystem of partners, while Fox content will remain widely available across distribution channels.
The transaction remains subject to shareholder approvals, regulatory clearances in the United States and certain international markets, and other customary closing conditions. Anthony Wood and affiliated entities holding a majority of Roku’s voting power have already entered into voting agreements supporting the merger.
The deal is expected to close during the first half of calendar year 2027.
