Fox Corp. has agreed to acquire streaming platform Roku in a cash-and-stock deal valued at approximately $22 billion, including debt. The transaction values Roku at $160 per share and will combine Fox's portfolio of live sports, news, and entertainment content with Roku's connected-TV operating system and advertising platform.
The combined company is projected to become the third-largest player in the US television market by share of viewers. Fox CEO Lachlan Murdoch called it a "defining moment" for the company, while Roku CEO Anthony Wood said the deal provides "an extraordinary opportunity to accelerate our vision." Roku's platform reaches more than 100 million households globally.
Under the terms, Fox shareholders will own about 73% of the combined entity, with Roku shareholders holding the remaining 27%. The deal has been approved by both boards. Fox will fund the cash portion with cash on hand and new debt financing, including a $12 billion bridge facility. The companies target approximately $400 million in annual cost synergies and expect the transaction to be accretive to free cash flow per share by the second full year after closing.
Wall Street reaction was mixed: Fox shares fell about 13% in premarket trading on dilution concerns, while Roku shares rose 1.7% to $146.11 after a prior 20% jump on sale speculation. Analysts broadly see strategic logic. Needham raised its Roku price target to $170, and JPMorgan noted the acquisition could reposition Fox toward digital streaming and answer concerns about dependence on traditional pay-TV. However, integration risks remain, including execution complexity and operational challenges.
The acquisition is expected to close in the first half of 2027, pending regulatory and shareholder approvals. It represents Fox's boldest move yet to secure a stronger position in the streaming economy amid industry-wide shifts away from cable television.
