Fox to acquire Roku for $22 billion in streaming shakeup

Fox will acquire Roku for $22B in a cash-and-stock deal at $160 per share. The merger, closing in 2027, will create a major streaming player and target $400M in annual cost synergies.

Fox has announced plans to acquire Roku in a cash-and-stock deal valued at approximately $22 billion, offering $160 per share—an 11.4% premium over Roku’s last closing price. The deal structure includes $96 in cash and 0.9693 Fox Class A shares for each Roku share. Following the merger, Fox shareholders will own about 73% of the combined company, while Roku shareholders will hold 27%. The transaction is expected to close in the first half of 2027, pending regulatory approval, and will be partially financed by $12 billion in bridge financing from Morgan Stanley. The combined entity will bring together Fox’s news, sports, entertainment, and Tubi with Roku’s connected TV platform and The Roku Channel, reaching over 100 million streaming households globally. The companies expect around $400 million in annual cost synergies and aim to become the third-largest TV operator in the US by viewing share. This move highlights the industry’s shift toward integrating content, distribution, advertising, and direct audience engagement.