Fox ($FOXA) agreed to acquire Roku ($ROKU) in a cash-and-stock deal valued at about $22 billion, including debt. The transaction gives Fox direct access to Roku's streaming platform, connected TV operating system, and more than 100 million global streaming households as media companies compete for digital audiences and advertising dollars.
- Fox will acquire Roku for $160 per share, an 11.4% premium to Roku's prior close.
- The deal is expected to close in the first half of 2027.
- Fox shareholders are expected to own about 73% of the combined company, while Roku shareholders will own about 27%.
- The combined company would become the third-largest U.S. television player by share of viewing, according to the companies.
- Roku generated $613 million in advertising revenue in the first quarter, up 27% year-over-year.
- Fox secured $12 billion in bridge financing from Morgan Stanley Senior Funding.
Relevant Companies
- Fox ($FOXA) - The deal expands Fox's streaming distribution and connected TV advertising capabilities.
- Roku ($ROKU) - Roku shareholders receive cash and stock consideration at a premium to the prior close.
- Netflix ($NFLX) - The combined Fox-Roku platform could increase competition in streaming distribution and advertising.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
