Key Highlights
- Fox Corporation has finalized an agreement to purchase Roku through a combined cash-and-stock transaction totaling approximately $22 billion
- The offer price of $160 per share represents an 11.4% premium above Roku’s most recent closing price
- Each Roku shareholder will receive $96 cash combined with 0.9693 shares of Fox Class A stock
- Both companies anticipate completing the acquisition during the first six months of 2027
- The merger unites Fox’s extensive content library in sports, news, and entertainment with Roku’s dominant streaming television infrastructure
Fox Corporation has reached a definitive agreement to acquire Roku in a transaction valued at approximately $22 billion, both companies announced on Monday.
The acquisition values Roku at $160 per share—representing an 11.4% premium over its prior closing price. Shares of Roku had been hovering near $143 prior to the announcement.
The compensation structure consists of $96 cash plus 0.9693 shares of Fox Class A common stock for every Roku Class A and Class B share held.
Both parties expect the transaction to receive final approval and close during the first half of 2027, pending regulatory clearance.
Lachlan Murdoch, Fox’s Chief Executive Officer, characterized the acquisition as “a defining moment” for Fox Corporation. He described the move as a “natural extension” of strategic initiatives Fox has been cultivating over the past ten years.
Murdoch further stated the transaction will “transform the scope” of Fox’s operations into rapidly expanding market segments and create a “step change” in the company’s overall trajectory.
Strategic Value for Fox Corporation
Roku generated $613 million in advertising revenue during Q1 2026, marking a 27% increase compared to the same period the previous year. Advertising constitutes Roku’s primary revenue stream, complemented by subscription fees from applications operating on its platform.
Roku’s technology serves as a bridge connecting streaming platforms such as Netflix and YouTube to television sets via its hardware devices and integrated smart TV operating system. The platform has established itself as one of America’s most prevalent TV operating systems.
This acquisition provides Fox with immediate access to Roku’s substantial viewer base, enabling the integration of Fox’s proprietary content—encompassing Fox News, Fox Sports, and the Tubi streaming platform—within Roku’s established infrastructure.
Fox’s Tubi, an ad-supported free streaming service, has emerged as one of the company’s most rapidly expanding properties in recent years, and Roku’s extensive reach positions it for accelerated growth.
Transaction Framework
The acquisition employs a hybrid payment model combining cash and equity. Roku shareholders will receive $96.00 cash alongside approximately one Fox Class A share for each Roku share owned.
This blended approach establishes the $160 per share valuation. The 11.4% premium represents a reasonable markup compared to Roku’s pre-announcement trading levels.
The transaction is designed to finalize immediately preceding the merger’s official effective date, with Fox distributing newly issued Class A shares as partial consideration.
Regulatory examination will play a critical role in determining the timeline, though both companies are targeting completion during the first half of 2027.
Fox Corporation and Roku publicly confirmed the agreement on Monday, June 15, 2026.
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