NEW YORK — Fox Corporation has entered into a definitive agreement to acquire connected television pioneer Roku, Inc. in a cash-and-stock deal valued at an enterprise value of approximately $22 billion.
The transaction marks the largest acquisition for Fox since its 2019 restructuring and positions the combined media titan as the third-largest television player in the United States by total viewing share.
Under the terms of the agreement, Roku shareholders will receive $96.00 in cash plus 0.9693 shares of Fox Class A common stock for each share of Roku owned. The implied value of $160.00 per share represents a 34% premium over Roku’s unaffected share price before reports of sale negotiations. Upon closing, current Fox shareholders will own approximately 73% of the combined entity, while Roku shareholders will hold the remaining 27%.
Marrying Live Sports and Ad-Supported Streaming
The merger creates a digital and broadcast heavyweight by pairing Fox’s live news, major sports broadcasting rights (including the NFL and MLB), and its free ad-supported streaming service (FAST), Tubi, with Roku’s distribution platform.
Roku crossed 100 million active global streaming households earlier this year, serving as the primary streaming gatekeeper for more than half of all broadband homes in the United States. Combining Roku’s connected TV advertising infrastructure and first-party viewer data with Fox’s live broadcast ecosystem provides advertisers with an unprecedented direct reach.
“This is a defining moment for FOX, and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade,” said Lachlan Murdoch, Executive Chair and CEO of Fox Corporation. “In 2019, we reoriented the company around live news and sports. Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it.”
Anthony Wood, founder, chair, and CEO of Roku, praised the merger as an opportunity to accelerate the hardware and software platform’s growth.
“Over the past two decades, we’ve built Roku into the leading TV streaming platform, reaching more than 100 million households globally and reshaping how people discover and enjoy entertainment,” Wood said. “The combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster, and innovate more aggressively for viewers, partners, and advertisers.”
Leadership Structure and Path to Closing
Following the close of the transaction, Roku will operate as a distinct division within Fox Corporation. Anthony Wood will maintain an ongoing leadership role within the business and will join the Fox Corporation Board of Directors.
To fund the cash portion of the transaction, Fox has secured $12 billion in committed bridge financing through Morgan Stanley. While Wall Street gave the announcement a mixed initial reaction over leverage concerns, the deal significantly solidifies Fox’s direct-to-consumer footprint in an increasingly crowded streaming market.
The boards of directors of both companies unanimously approved the transaction. It remains subject to customary closing conditions, including shareholder votes from both entities and regulatory approvals from the U.S. Department of Justice (DOJ) and Federal Communications Commission (FCC). The deal is expected to close in the first half of calendar year 2027.
