Fox Corporation has agreed to acquire Roku in a cash-and-stock transaction valued at about $22 billion in enterprise value. Under the agreement, Roku shareholders will receive $160 per share, consisting of $96 in cash and 0.9693 shares of Fox Class A stock, meaning a premium of around 34% over Roku’s unaffected share price before reports emerged that the streaming company was exploring strategic alternatives. Both boards have unanimously approved the transaction, and the companies expect it to close in the first half of 2027, subject to shareholder and regulatory approvals.
Following completion, Fox shareholders will own about 73% of the combined company, while Roku investors will hold the remaining 27%. The acquisition gives Fox direct access to one of the world’s largest connected-TV ecosystems. Roku’s platform reaches more than 100 million streaming households globally. Beyond its streaming devices, Roku controls a smart-TV operating system embedded in televisions from multiple manufacturers, operates The Roku Channel, runs a substantial advertising technology business, manages subscription distribution relationships, and collects valuable first-party viewing data. Fox believes those assets will strengthen its ability to target audiences, improve advertising effectiveness, and reduce its long-term dependence on traditional cable and satellite distribution.
Strategically, the deal shows Fox’s decade-long shift toward live content and ad-supported streaming. After selling most of its entertainment assets to Disney in 2019, Fox concentrated on news, sports, and live programming, while expanding digitally through acquisitions like Tubi, which it purchased for $440 million in 2020. The company later launched Fox One as a direct-to-consumer streaming service. Chief Executive Lachlan Murdoch described the Roku acquisition as the next step in that strategy, arguing that it combines Fox’s portfolio of premium live sports and news programming with the streaming platform through which millions of Americans increasingly watch television.
The combined company is expected to become the third-largest television business in the United States by share of viewing. Fox plans to finance the acquisition through a mix of existing cash, stock issuance and about $12 billion in committed debt financing, adding around $8.3 billion of debt to its balance sheet. Management projects around $400 million in annual run-rate cost synergies through operational efficiencies, technology integration and combined advertising operations. Fox has also stated that its shareholder return program will continue.
At the same time, for Roku, the deal arrives after years of speculation about its future. Once one of the biggest beneficiaries of the streaming boom, Roku faced increasing pressure from powerful competitors including Amazon, Google, Apple and major television manufacturers. Although it retained a dominant position in connected TV, investors had become concerned about slowing growth and profitability. Roku founder and CEO Anthony Wood is expected to remain involved with the business and join Fox’s board, while the companies have highlighted that Roku will continue operating as an open, partner-friendly platform rather than becoming an exclusive distribution vehicle for Fox content.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
