Key Takeaways
- Fox Corporation will acquire Roku through a combined cash-and-stock transaction totaling approximately $22 billion
- The acquisition price of $160 per share represents an 11.4% premium over Roku’s previous closing price
- Each Roku shareholder receives $96 cash plus 0.9693 shares of Fox Class A stock
- The companies anticipate completing the merger during the first half of 2027
- This acquisition merges Fox’s media content portfolio with Roku’s dominant streaming television platform
Fox Corporation announced Monday its agreement to acquire Roku in a transaction valued at approximately $22 billion.
The media conglomerate is offering $160 per share for Roku shareholders — representing an 11.4% markup above the streaming platform’s most recent closing price. Prior to the announcement, Roku shares were changing hands near the $143 level.
The consideration structure provides $96 in cash combined with 0.9693 shares of Fox Class A common stock for every share of Roku Class A and Class B stock.
Company executives anticipate finalizing the transaction during the first six months of 2027, pending regulatory clearance.
Lachlan Murdoch, Fox’s Chief Executive Officer, characterized the acquisition as “a defining moment” for his organization. He described the transaction as a “natural extension” of strategic initiatives Fox has pursued over nearly ten years.
Murdoch stated the acquisition would “transform the scope” of Fox’s operations into faster-growing market segments and create a “step change” in the company’s overall expansion trajectory.
Strategic Benefits for Fox Corporation
Roku generated $613 million in advertising revenue during Q1 2026, marking a 27% increase compared to the same period one year earlier. Advertising represents Roku’s primary revenue stream, supplemented by subscription fees from applications operating on its platform.
Roku’s technology platform bridges streaming services such as Netflix and YouTube with television sets via its hardware devices and smart TV operating system. The platform has established itself as among the most prevalent TV operating systems across the United States.
This acquisition provides Fox with immediate access to Roku’s substantial viewer base, enabling the company to distribute its proprietary content — encompassing Fox News, Fox Sports, and the Tubi streaming platform — through Roku’s established infrastructure.
Fox’s Tubi, a free advertising-supported streaming service, has emerged as one of the company’s most rapidly expanding properties in recent quarters, and integration with Roku’s platform reach could accelerate that growth trajectory.
Transaction Framework
The acquisition employs a hybrid payment approach combining cash and equity. Roku shareholders will receive $96.00 in cash alongside approximately one share of Fox Class A common stock.
This combined payment structure establishes a $160 per-share valuation for Roku. The 11.4% premium represents a modest increase above Roku’s trading level immediately before deal rumors emerged.
The transaction framework calls for completion just prior to the merger’s official effective date, with Fox issuing newly created Class A shares as partial consideration.
Regulatory examination will significantly influence the completion timeline, though both organizations are targeting a first-half 2027 closing date.
Fox and Roku publicly confirmed their merger agreement on Monday, June 15, 2026.
