Fox Corporation has reached a definitive agreement to acquire Roku, Inc. in a transaction that values the streaming platform company at approximately $22 billion in enterprise value. The deal combines Fox’s established leadership in live sports, news, and entertainment programming with Roku’s prominent connected TV platform, aiming to create a larger media and technology entity focused on evolving video consumption trends.
Under the terms of the agreement, Fox will purchase Roku for $160 per share through a mix of cash and Fox Class A common stock. This includes $96 in cash and approximately 0.9693 shares of Fox Class A stock for each Roku share. The stock portion is based on a reference price derived from Fox’s recent trading average. Upon completion, existing Fox shareholders are projected to own about 73 percent of the combined company, while Roku shareholders would hold roughly 27 percent.
The acquisition pairs Fox’s strong position in linear television, including major sports rights such as the NFL, MLB, NASCAR, Big Ten Conference games, and the FIFA World Cup, along with its news networks, with Roku’s streaming capabilities. Roku operates one of the leading connected TV platforms in the United States, reaching more than 100 million global streaming households and serving over half of U.S. broadband homes. The combined entity is expected to rank as the third-largest player in U.S. television by share of viewing time, spanning broadcast, cable, and streaming environments.
Now the question is, will Fox pull its content from Hulu to move it over to Roku’s streaming platforms? We took a look at that over the weekend, and you can learn more about what could happen HERE.
This move extends Fox’s strategy of emphasizing live content and expanding into digital streaming. The company previously restructured around news and sports programming and acquired the Tubi streaming service, which has grown significantly under its ownership. Integrating Roku’s platform, including The Roku Channel, first-party data, and direct consumer relationships, is intended to strengthen Fox’s presence across the full video ecosystem. The deal is designed to enhance scale in high-growth areas such as connected TV advertising and subscriptions while maintaining a balanced portfolio of advertising and distribution revenue streams.
Key anticipated benefits include greater audience reach across multiple viewing platforms, improved content discovery and engagement through combined technology and programming, and a stronger overall growth profile. The companies project approximately $400 million in annual run-rate cost synergies, with potential additional revenue opportunities. The transaction is also expected to be accretive to free cash flow per share by the second full year following closing.
Fox plans to finance the cash component using available cash reserves and new debt. The company has secured $12 billion in committed bridge financing. Following the deal, pro forma net leverage is anticipated to stand at about 2.8 times, factoring in partial credit for projected synergies. Fox has indicated it will maintain its investment-grade credit rating and continue its existing shareholder return programs, including dividends and share repurchases.
Roku, known for pioneering and scaling streaming television, will continue to function as an open platform that supports multiple content partners. The combined company intends to distribute Fox content widely across various channels. Anthony Wood, Roku’s founder, chairman, and chief executive officer, is expected to take an ongoing leadership role and join the Fox board of directors after the transaction closes.
Both companies’ boards of directors have unanimously approved the agreement. The deal remains subject to approval by shareholders of both Fox and Roku, regulatory clearances in the United States and certain other jurisdictions, and other standard closing conditions. Certain major Roku shareholders, including entities affiliated with Anthony Wood, have entered into voting support agreements to back the transaction. Fox and Roku anticipate completing the acquisition during the first half of 2027.
This development reflects broader industry shifts toward integrated media and technology businesses capable of competing in a fragmented video landscape dominated by live events and on-demand streaming. The combined platform would offer diversified reach that appeals to viewers seeking both appointment-based programming and flexible streaming options, while providing advertisers with broader targeting capabilities across linear and digital formats.
Further details will be outlined in regulatory filings with the Securities and Exchange Commission, including a registration statement on Form S-4 that incorporates a joint proxy statement and prospectus. The companies plan to discuss the transaction during a joint investor conference call.
Please add Cord Cutters News as a source for your Google News feed HERE. You can watch today’s top cord cutting stories on our YouTube channel HERE. Please follow us on Facebook and X for more news, tips, and reviews. Need cord cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help.