Fox Corp to Acquire Roku (ROKU) in $22B Streaming Deal: Complete Breakdown

Key Highlights

Table of Contents

Fox Corporation has finalized an agreement to purchase Roku through a combined cash-and-stock transaction totaling approximately $22 billion
The purchase price of $160 per Roku share represents an 11.4% premium over the streaming company’s previous closing price
Each Roku shareholder will receive $96 cash combined with 0.9693 shares of Fox Class A stock
Completion of the acquisition is projected for the first six months of 2027
This merger unites Fox’s extensive sports, news, and entertainment library with Roku’s dominant streaming television infrastructure

Fox Corporation announced Monday its definitive agreement to acquire Roku in a landmark transaction valued at approximately $22 billion.

FOX IS BUYING $ROKU FOR $22B EV
Terms:
$160/share
$96 cash + 0.9693 FOXA shares
73% FOX shareholder ownership
27% Roku shareholder ownership
$12B bridge financing from Morgan Stanley
~2.8x pro forma net leverage
~$400M expected run-rate cost synergies
Expected close: H1… pic.twitter.com/ueJFeqQrdr
— Wall St Engine (@wallstengine) June 15, 2026

Under the terms of the deal, Fox will compensate Roku shareholders $160 for each share held — representing an 11.4% premium above Roku’s most recent trading price. Prior to the announcement, Roku shares were changing hands near the $143 mark.

The compensation structure allocates $96 in cash alongside 0.9693 shares of Fox Class A stock for every Roku Class A and Class B share outstanding.

Pending regulatory clearance, the companies anticipate finalizing the transaction during the first half of 2027.

Roku, Inc., ROKU

Fox Chief Executive Lachlan Murdoch characterized the acquisition as “a defining moment” for his organization. He described the move as a “natural extension” of Fox’s strategic direction cultivated over nearly ten years.

Murdoch emphasized that the transaction will “transform the scope” of Fox’s operations into higher-growth sectors while delivering a “step change” in the company’s overall expansion trajectory.

Strategic Value for Fox Corporation

Roku generated $613 million in advertising income during Q1 2026, marking a 27% increase compared to the same period the previous year. Advertising represents the primary revenue stream for Roku, complemented by subscription fees from applications operating on its ecosystem.

Roku’s technology platform serves as a bridge connecting streaming applications such as Netflix and YouTube to television sets via its hardware devices and smart TV operating system. The platform has established itself as among the most prevalent TV operating systems across the United States.

This transaction provides Fox with immediate access to Roku’s extensive viewer network, enabling the company to integrate its proprietary content portfolio — spanning Fox News, Fox Sports, and the Tubi streaming platform — directly into Roku’s established infrastructure.

Fox’s Tubi, a free ad-supported streaming television service, has emerged as one of the company’s most rapidly expanding properties in recent years, and integration with Roku’s platform reach positions it for accelerated growth.

Transaction Framework

The acquisition employs a hybrid payment methodology combining cash and equity. Roku shareholders will receive $96.00 cash plus approximately one Fox Class A share for each Roku share held.

This blended approach establishes a total valuation of $160 per Roku share. The 11.4% premium indicates a measured valuation increase above Roku’s pre-announcement trading levels.

The transaction framework calls for completion shortly before the merger becomes effective, with Fox distributing newly issued Class A shares as partial consideration.

Regulatory examination will play a critical role in the timeline, with both organizations working toward a first-half 2027 completion date.

Fox and Roku made the agreement public on Monday, June 15, 2026.