Fox Corporation confirmed Monday it will acquire Roku in a stock and cash deal valued at approximately $22 billion, paying $160 per share — an 11.4% premium to Roku’s prior-day closing price. Fox has secured a $12 billion loan to finance the transaction, which has been approved by the boards of both companies and is expected to close in the first half of 2027, subject to shareholder votes and regulatory clearance. Upon completion, existing Fox shareholders will hold approximately 73% of the combined company and Roku shareholders 27%. The deal unites Fox’s live news and sports channels, its free ad-supported streaming service Tubi, and its direct-to-consumer service Fox One with Roku’s connected TV platform and The Roku Channel — giving Fox direct access to Roku’s 100 million streaming households to sharpen targeted ad sales and reduce reliance on traditional pay-TV distribution. The companies say the combined entity will rank as the third-largest television company in the United States by viewing time. Roku CEO Anthony Wood will remain in a senior role and join Fox’s board.
The acquisition follows a report last Friday that Roku had been evaluating strategic options, including an outright sale, after attracting interest from several companies seeking its streaming audience and advertising platform. Roku’s advertising revenue reached $613 million in Q1 2026, up 27% year over year. Fox CEO Lachlan Murdoch described the deal as a “defining” moment that would transform the company’s growth profile, while Wood called it an “extraordinary opportunity to accelerate our vision.” J.P. Morgan analysts said the combination of Tubi and The Roku Channel could produce a streaming leader with meaningful share of total TV viewing time. Fox stock fell around 12% in pre-market trading on the news; Roku shares edged up 2%, following an over-20% surge the prior session on deal speculation. Fox had previously acquired Tubi for $440 million in 2020.