Fox Corporation said it will acquire Roku in a cash-and-stock deal valuing the streaming platform at about $22 billion, or $160 a share, a move that would combine Fox’s live sports and news assets with Roku’s connected-TV distribution and more than 100 million streaming households.
Under the terms, Fox will pay $96 in cash and 0.9693 Fox Class A shares for each Roku share. Based on Fox’s June 10 reference price of $66.03, the stock portion is valued at $64 a share.
At closing, Fox shareholders are expected to own about 73% of the combined company, while Roku holders would own about 27%.
Fox said the deal is expected to generate about $400 million in annual run-rate cost synergies and become accretive to free cash flow per share by the second full year after closing.
To fund the cash portion, Fox plans to use a mix of new debt and cash on hand. The company said it has secured $12 billion in fully committed bridge financing. Fox expects pro forma net leverage to be about 2.8 times, including 50% credit for the expected synergies.
The companies said the transaction has been unanimously approved by both boards. It is expected to close in the first half of 2027, pending shareholder and regulatory approvals.
Roku founder and CEO Anthony Wood will remain involved in the combined company and join Fox’s board after the deal closes. Wood and related holders controlling at least a majority of Roku’s voting power agreed to support the transaction. As a result of these announcements, the company's shares have moved -18.57% on the market, and are now trading at a price of $53.62. For more information, read the company's full 8-K submission here.
