Fox agrees to acquire Roku in $22 billion cash-and-stock transaction

Fox Corp announced a cash-and-stock acquisition of Roku valued at roughly $22 billion, with the transaction priced at $160 per Roku share, an 11.4% premium to the prior close. The deal, expected to close in the first half of 2027, will give Fox direct access to Roku’s installed base of more than 100 million streaming households and is intended to enhance its advertising reach as viewers move toward digital platforms.

Under the terms of the agreement, Fox shareholders will own about 73% of the combined company, while Roku shareholders will hold roughly 27%. The merged entity is projected to become the third-largest player in U.S. television by share of viewing, according to statements from the companies.

Roku, a pioneer in bringing streaming services such as Netflix and YouTube to televisions via connected devices and smart TVs, generated $613 million in advertising revenue in the first quarter, a 27% year-on-year increase. Fox already operates the ad-supported streaming service Tubi, and analysts suggest that integrating Roku’s platform with Fox’s content could create a significant competitor in the streaming market.

"The combination of Fox’s sports and news programming with Roku’s streaming platform will strengthen our position as audiences shift online," a Fox spokesperson said.

Shares of Fox fell 8% in pre-market trading following the announcement, while Roku’s shares were temporarily halted.