Fox Corporation to Acquire Roku (ROKU) in $22 Billion Streaming Deal

Key Highlights

• Fox Corporation announces acquisition of Roku in a combined cash-and-stock transaction totaling approximately $22 billion
• Roku shareholders to receive $160 per share, representing an 11.4% premium over the previous closing price
• Transaction breakdown: $96 cash combined with 0.9693 shares of Fox Class A stock per Roku share
• Deal anticipated to finalize during the first half of 2027
• Merger unites Fox’s media content library with Roku’s streaming distribution platform

Fox Corporation announced Monday it has reached an agreement to acquire streaming platform Roku in a transaction valued at approximately $22 billion.

Under the terms of the agreement, Fox Corporation will compensate Roku shareholders $160 for each share owned — marking an 11.4% premium above Roku’s most recent closing stock price. Prior to the announcement, Roku shares were trading at approximately $143.

The compensation structure consists of $96 in cash combined with 0.9693 shares of Fox Class A common stock for every Roku Class A and Class B share held.

The companies anticipate completing the transaction during the first half of 2027, pending regulatory clearance.

Roku, Inc., ROKU

Fox Corporation CEO Lachlan Murdoch characterized the acquisition as “a defining moment” for his company. He described the transaction as a “natural extension” of strategic initiatives Fox has been developing over nearly ten years.

Murdoch emphasized the deal will “transform the scope” of Fox’s operations into high-growth business segments and create a “step change” in the company’s overall expansion trajectory.

Strategic Value for Fox Corporation

Roku generated $613 million in advertising revenue during Q1 2026, reflecting a 27% year-over-year increase. Advertising represents Roku’s primary revenue stream, complemented by subscription fees from applications available on its platform.

Roku’s streaming platform serves as a bridge between content providers such as Netflix and YouTube and television sets through its hardware devices and smart TV operating system. The platform has established itself as one of the most prevalent TV operating systems across the United States.

This acquisition provides Fox Corporation with direct access to Roku’s substantial viewer base, enabling the company to integrate its proprietary content — encompassing Fox News, Fox Sports, and the Tubi streaming platform — into Roku’s distribution 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 could significantly accelerate that growth trajectory.

Transaction Terms and Structure

The acquisition employs a hybrid payment approach combining cash and equity. Each Roku shareholder will be entitled to receive $96.00 in cash alongside approximately one Fox Class A common share.

This mixed compensation structure establishes Roku’s valuation at $160 per share. The 11.4% premium represents a modest markup relative to Roku’s trading price before merger speculation surfaced.

The transaction is structured to complete shortly before the merger’s official effective date, at which point Fox will issue additional Class A shares as partial consideration.

Regulatory examination will play a critical role in determining the transaction timeline, with both companies projecting a completion window in the first half of 2027.

Fox Corporation and Roku publicly confirmed the merger agreement on Monday, June 15, 2026.

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