Fox Corporation announced an agreement to acquire streaming pioneer Roku, Inc. in a cash-and-stock deal valued at approximately $22 billion, marking one of the company’s most aggressive moves into connected television. The transaction would combine Fox’s live sports, news and entertainment programming with Roku’s streaming hardware, operating system, advertising business and global connected-TV footprint. Under the terms of the deal, Fox will acquire Roku for $160 per share, with Roku shareholders receiving $96 in cash and 0.9693 shares of Fox Class A common stock for each outstanding Class A and Class B share. The offer represents a premium of more than 30% over Roku’s share price before reports of a possible transaction began circulating.
Fox plans to finance the cash portion of the transaction through cash on hand and new debt, supported by $12 billion in committed bridge financing from Morgan Stanley. Once the deal closes, existing Fox shareholders are expected to own roughly 73% of the combined company, while Roku shareholders will hold about 27%. The transaction has been unanimously approved by the boards of both companies, and Roku founder Anthony Wood, who controls a majority of Roku’s voting power, has signed a support agreement that effectively secures shareholder approval on Roku’s side. The deal is expected to close in the first half of 2027, pending Fox shareholder approval and regulatory clearance.
«This is a defining moment for Fox. By pairing the most valuable live content portfolio in the industry with a leading TV streaming platform, we are creating a scaled next-generation media and technology company. This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile.»
-Fox Executive Chair and CEO, Lachlan K. Murdoch
The acquisition gives Fox direct control of one of the most important platforms in the connected-TV market. Roku reaches more than 100 million streaming households globally and its operating system is used across a large share of smart televisions and streaming devices. For Fox, the deal offers access to first-party viewer data, a stronger advertising marketplace and greater control over how programming is discovered on television screens. The company is also expected to integrate its existing ad-supported streaming service Tubi with The Roku Channel, creating a much larger free streaming business. The combined company is projected to become the third-largest player in U.S. television by share of viewing.
Roku founder, chairman and CEO Anthony Wood will continue to play an active leadership role and will join the Fox Corporation board of directors after the transaction closes. Wood described the merger as a major opportunity for Roku’s next stage of 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. I’m incredibly proud of what our team has built, and the combination with Fox is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers.» His comments reflected Roku’s effort to frame the deal as an expansion of its platform rather than an exit from independence.
Fox Executive Chair and CEO Lachlan K. Murdoch described the acquisition as a turning point for the company’s future in streaming and digital advertising. «This is a defining moment for Fox. By pairing the most valuable live content portfolio in the industry with a leading TV streaming platform, we are creating a scaled next-generation media and technology company. This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile.» Fox has said it intends to keep Roku open and partner-friendly, a key point for streaming services such as Netflix, Disney+, Prime Video and others that rely on Roku’s platform to reach viewers.
«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. I’m incredibly proud of what our team has built, and the combination with Fox is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers.»
-Roku founder, chairman and CEO, Anthony Wood
The deal comes as traditional television companies continue to move away from a shrinking cable ecosystem and compete more directly for streaming audiences, advertising dollars and control over the connected-TV home screen. Roku’s platform has become a gateway for millions of households, giving Fox a stronger position in how viewers discover live sports, news and free ad-supported content. The transaction is also expected to raise questions about media consolidation, platform neutrality and whether Fox-owned programming could receive more prominent placement across Roku devices. For Fox, however, the acquisition represents a major bet that control of both premium content and streaming distribution will define the next phase of the television business.
