Key facts
- Fox Corp. is acquiring Roku in a cash-and-stock deal valued at $22 billion.
- The acquisition aims to strengthen Fox's streaming position and compete with major players like Netflix and Amazon.
- Roku shareholders will receive $160 per share, comprising $96 in cash and 0.97 Fox Class A shares.
- The deal is expected to generate $400 million in annual cost savings.
- Fox has secured $12 billion in bridge financing for the cash portion of the transaction.
- The acquisition is anticipated to close in the first half of calendar year 2027.
Media giant Fox is buying streaming firm Roku in a deal valued at $22 billion, a move intended to significantly bolster Fox's position in the rapidly evolving U.S. television market. The acquisition, structured as a cash-and-stock transaction, aims to combine Fox's content portfolio, including live news and sports, with Roku's extensive connected TV platform, which reaches over 100 million households globally.
Roku shareholders will receive $160 per share, consisting of $96 in cash and 0.97 shares of Fox Class A stock. This valuation represents a premium to Roku's prior closing price. Fox plans to fund the cash component through existing cash reserves and new debt, supported by $12 billion in committed bridge financing from Morgan Stanley. The company anticipates that the merger will yield approximately $400 million in annual cost savings.
The tie-up comes as advertisers increasingly shift spending to streaming platforms, with projections indicating significant growth in this sector. Fox's acquisition of Roku is seen as a strategic bet on the future of video consumption, emphasizing the enduring importance of live sports and news alongside streaming services. The deal is expected to close in the first half of calendar year 2027.