Fox Corp. is making a dramatic move to cement its future in the streaming world, revealing plans to acquire Roku in a deal that values the streaming platform at $22 billion.
Fox announced Monday that it has agreed to acquire Roku for $160.00 per share in a combination of cash and Fox Class A common stock, giving Roku an enterprise value of approximately $22 billion. The companies expect the transaction to close in the first half of calendar year 2027.
The deal will combine Fox’s sports, news and entertainment content and Tubi service with Roku’s connected TV platform, the Roku Channel, first-party data and direct relationships with more than 100 million streaming households worldwide.
The companies said they are committed to “continuing to operate Roku as an open, partner-friendly platform” and to continue the “ubiquitous” distribution of Fox content. Fox Corp. said Anthony Wood, Roku’s founder, chairman and CEO, will have a continuing role in the combined company and will join Fox’s board of directors after the transaction closes.
According to both companies, the combined company will be the third-largest company in terms of U.S. TV viewing share, based on estimates.
Founded in 2002, Roku was one of the earliest entrants in the streaming device space and has been an independent company ever since, competing for market share with big tech companies like Amazon, Google, Samsung, and Apple. After years of struggling to achieve profitability, the company reported its first full-year profit in 2025, with net income of $88.4 million and sales of $4.74 billion (up 15% from the previous year).
As of the end of March, Roku had $1.65 billion in cash and equivalent assets and no debt on its balance sheet.
Lachlan Murdoch, Fox’s executive chairman and CEO, said it was a “defining moment” for the company. He noted that after the 21st Century Fox assets were sold to Disney in 2019, Fox was left with a broadcast and cable network focused on live news and sports. In 2020, the company acquired free ad-supported streaming platform Tubi for $440 million. Tubi currently has over 100 million monthly users.
“This is a defining moment for Fox and a natural extension of the deliberate and focused strategy we have executed for nearly a decade,” Murdoch said in a statement. The Roku acquisition “brings together the most valuable live content portfolio in video consumption with the premier streaming platform on which America watches it. This combination transforms our scope into a high-growth sector and makes a significant difference to our overall growth profile.”
Murdoch continued, “Roku pioneered streaming TV and expanded it into a major (connected TV) platform. Together, we will lead that next chapter.”
“Over the past 20 years, we’ve built Roku into the leading TV streaming platform, reaching more than 100 million homes around the world and reshaping the way people discover and enjoy entertainment. I’m extremely proud of what our team has built,” Wood said in a statement. “The combination with Fox is an incredible opportunity for our viewers, partners and advertisers to accelerate our vision, scale faster and innovate more aggressively.
Roku’s board of directors unanimously approved the sale to Fox Corp., according to Wood, “a strategic review process that concluded that this transaction provides a significant premium to Roku shareholders while also providing an opportunity to participate in the combined company’s attractive future upside. I could not be more excited about what we will accomplish together.”
Fox Corp. (formerly known as 21st Century Fox) previously invested in Roku, but sold a 5% stake in the company when it acquired Tubi in 2020.
Under the terms of the transaction, Fox will pay $96.00 per share in cash (approximately $14.2 billion) and provide 0.9693 shares of Fox Class A common stock for each outstanding Roku Class A and Class B share. Upon closing, Fox’s existing shareholders will own approximately 73% of the combined company, and legacy Roku shareholders will own approximately 27%.
Upon completion of the transaction, Fox expects the combined company’s pro forma net leverage ratio to be approximately 2.8x (net debt divided by earnings before interest, taxes, depreciation, and amortization). Fox said the ratio includes a “50% credit for run-rate cost synergies.”
Fox plans to fund the cash portion of the Roku deal with a combination of new debt and cash on hand. Fox announced that it has secured $12 billion in fully committed bridge financing from Morgan Stanley.
Fox said it expects the Roku deal to be accretive to free cash flow per share by two full years after closing, or by 2029. The companies expect $400 million in annual run-rate cost synergies and “additional revenue growth” from the combination of Fox and Roku.
