Fox Corporation Announces \$22 Billion Acquisition of Roku, Inc.: A Transformative Deal for the Streaming and Media Landscape
New York, NY and San Jose, CA – June 15, 2026 – In a landmark deal set to reshape the U.S. media and technology landscape, Fox Corporation (Nasdaq: FOX) has entered into a definitive agreement to acquire Roku, Inc. (Nasdaq: ROKU) in a cash and stock transaction valued at approximately \$22 billion in enterprise value. This deal is positioned to create one of the largest streaming businesses in the United States, integrating Fox’s premium live content and Tubi with Roku’s industry-leading connected TV platform, The Roku Channel, and its direct relationship with over 100 million global streaming households.
Key Highlights of the Transaction
- Acquisition Price: \$160.00 per Roku share, comprised of \$96.00 in cash and 0.9693 shares of FOX Class A common stock for each Roku share, based on a reference price of \$66.03 per FOX Class A share (10-day volume-weighted average as of June 10, 2026).
- Valuation: The agreement values Roku at an enterprise value of approximately \$22 billion.
- Shareholder Ownership: Upon closing, FOX shareholders are expected to own approximately 73% of the combined company, with Roku shareholders owning about 27%.
- Strategic Rationale: The deal combines FOX’s leading position in live news and sports (including NFL, MLB, NASCAR, Big Ten, FIFA World Cup, FOX News, and FOX Business) with Roku’s dominance in connected TV and streaming households, making the entity the third-largest player in U.S. television by share of viewing.
- Synergies: The combined company expects to achieve approximately \$400 million in run-rate cost synergies, with additional revenue upside anticipated.
- Financial Impact: The transaction is expected to be accretive to FOX’s free cash flow per share by the second full year after closing, strengthening FOX’s long-term growth profile and accelerating its digital strategy.
- Capital Structure: FOX will fund the cash portion with a combination of new debt and existing cash. Morgan Stanley Senior Funding, Inc. has provided \$12 billion in fully committed bridge financing. Pro forma net leverage at closing is expected to be approximately 2.8x, inclusive of 50% credit for cost synergies.
- Leadership: Roku founder, chairman, and CEO Anthony Wood will have an ongoing role at the combined company and will join the FOX Board of Directors after the transaction closes.
- Closing Timeline: The transaction is subject to customary closing conditions, including shareholder and regulatory approvals, and is expected to close in the first half of calendar year 2027.
Strategic and Shareholder Implications
- Transformational Scale: The combined company will have unmatched scale and a diversified content and distribution platform, spanning broadcast, cable, local, and streaming. This broad reach is anticipated to benefit viewers, partners, and advertisers.
- Continued Capital Return: FOX’s existing shareholder capital return program, including share buybacks and dividends, will continue uninterrupted, and the company expects to maintain its investment-grade credit rating.
- Enhanced Growth Profile: The deal advances FOX’s business mix toward high-growth streaming and connected TV verticals, balancing advertising and distribution revenues.
- Premium to Shareholders: The transaction offers a significant premium to Roku shareholders, who will also have the opportunity to participate in the future upside of the combined company.
- Commitment to Open Platform: FOX and Roku are committed to keeping Roku as an open and partner-friendly platform, ensuring continued broad distribution of FOX content.
Important Details for Shareholders
- Voting Support: Anthony Wood and associated entities, holding at least a majority of Roku’s voting power, have agreed to vote in favor of the transaction. LGC Holdco LLC will support the issuance of FOX shares as part of the deal.
- Regulatory Filings: The companies will file a registration statement on Form S-4, including a joint proxy statement/prospectus, with the SEC. Investors are urged to read these documents once available.
- Risk Factors: The transaction is subject to risks such as regulatory and shareholder approvals, integration challenges, financing arrangements, potential litigation, and changes in market conditions. Shareholders should review all risk disclosures in SEC filings.
- Investor Call: FOX and Roku will host a joint investor conference call at 8:00 AM Eastern Time to discuss the transaction. Materials and replays will be available on both companies’ investor relations websites.
Advisors
- FOX: Allen & Company LLC (lead financial advisor), Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC (financial advisors), Weil, Gotshal & Manges LLP (legal counsel), Morgan Stanley Senior Funding, Inc. (\$12 billion bridge financing).
- Roku: Qatalyst Partners (exclusive financial advisor), Goodwin Procter LLP (legal counsel).
About Fox Corporation
Fox Corporation produces and distributes news, sports, and entertainment content through brands like FOX News Media, FOX Sports, Tubi Media Group, FOX Entertainment, and FOX Television Stations, connecting with consumers and advertisers across all platforms.
About Roku, Inc.
Roku is the leading TV streaming platform in the U.S., Canada, and Mexico by hours streamed, connecting viewers with content and offering unique advertising and subscription opportunities. Its products are available globally, and it owns The Roku Channel, Howdy, and Frndly TV.
Investor Contacts
- FOX Investor Relations: Gabrielle Brown ([email protected]), Charlie Costanzo ([email protected])
- FOX Media Relations: Brian Nick ([email protected]), Lauren Townsend ([email protected]), FGS Global for FOX ([email protected])
- Roku Investor Relations: Conrad Grodd ([email protected])
- Roku Media Relations: Kelli Raftery ([email protected]), Joele Frank, Wilkinson Brimmer Katcher (212-355-4449)
Key Takeaways for Investors
- This is a potentially market-moving event, with significant implications for both FOX and Roku shareholders. It may affect share values due to the scale of the transaction, anticipated synergies, and the shift in FOX’s business mix toward streaming and connected TV.
- Shareholders and investors should closely monitor further disclosures, SEC filings, and upcoming proxy materials for additional details on the terms, risk factors, and financial impacts of the transaction.
- The premium offered to Roku shareholders and the ongoing capital return program for FOX shareholders are important considerations for investment decisions.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should refer to official SEC filings and consult their financial advisor before making any investment decisions. The information provided is based on publicly available materials as of the date of publication and may be subject to change.
