Fox to Acquire Roku, Expanding Streaming Reach
Fox to acquire Roku in a cash-and-stock transaction valuing Roku at $22.0 billion and targeting $400 million of synergies, altering streaming monetization.
KEY TAKEAWAYS
- Fox will acquire Roku for $160 per share in a cash-and-stock deal valuing Roku at about $22.0 billion.
- Form 8-K summary targets pro forma net leverage of about 2.8x and $400 million in synergies.
- Fox expects to retain its investment-grade rating and continue shareholder capital returns post-close.
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Fox Corporation and Roku, Inc. announced on June 15, 2026, that Fox will acquire Roku in a cash-and-stock transaction combining Fox’s live sports, news, and Tubi with Roku’s platform to expand streaming reach and advertising monetization.
Deal Terms and Approvals
Fox Corporation (Nasdaq: FOXA, FOX) and Roku, Inc. (Nasdaq: ROKU) signed a definitive agreement under which Fox will acquire Roku for $160 per share. The consideration includes $96 in cash plus 0.9693 shares of Fox Class A common stock for each Roku share, valuing Roku at about $22 billion in enterprise value. The combined company will retain Fox Corporation’s corporate form.
The transaction requires approval from both companies’ shareholders, regulatory clearances, and customary closing conditions. It is expected to close in the first half of 2027.
Strategic and Financial Impact
The companies said the merger will unite Fox’s premium live content, including sports and news, and its free ad-supported streaming service Tubi with Roku’s streaming platform and The Roku Channel. Together, they expect to reach more than 100 million households, creating one of the largest streaming businesses in the U.S.
A summary of Fox’s Form 8-K indicates the deal targets pro forma net leverage of about 2.8 times and aims to generate approximately $400 million in annual run-rate cost and revenue synergies. Fox expects to maintain its current investment-grade credit rating and continue its shareholder capital return program without interruption. The company views the leverage target and synergy plan as the financial foundation for both acquisition financing and ongoing returns while expanding advertising revenue across the combined platforms.
If completed, the deal would combine a major live-content owner with a leading TV-platform operator, shifting Fox’s footprint toward a larger, ad-supported streaming business designed to increase engagement and monetization across linear and streaming channels.
The joint press release described the combination as creating a “scaled media and technology platform with superior reach, engagement and monetization capability,” uniting Fox’s premium live content with Roku’s leading streaming platform reaching over 100 million households.
