Fox Corporation to acquire Roku in $22 billion deal

Summary

Fox Corporation agreed to acquire Roku for $160 per share in a cash-and-stock deal valuing the streaming platform at approximately $22 billion in enterprise value, combining Fox's sports and news content with Roku's connected TV platform and first-party advertising data to create the third-largest player in US television by share of viewing.

Market Impact

The transaction—$96 cash plus 0.9693 Fox Class A shares per Roku share, an 11.4% premium to Roku's last close—marks a major media consolidation pairing Fox's NFL, MLB, NASCAR, Fox News, and Tubi content with Roku's connected TV distribution, The Roku Channel, and advertiser relationships. Fox will fund the cash portion with new debt and cash on hand, backed by $12 billion in committed bridge financing from Morgan Stanley, with pro forma net leverage of approximately 2.8x at closing. Fox expects the deal to be accretive to free cash flow per share by the second full year with approximately $400 million in run-rate cost synergies. Roku's platform segment, 87.5% of revenue at $4.1 billion last year and led by 27%-growing digital advertising, gives Fox a streaming distribution and data engine as linear TV declines.

Why It Matters

Fox's $22 billion acquisition of Roku represents a major bet on connected TV distribution and advertising data as traditional broadcasters seek to control streaming platforms amid the structural decline of linear television.

Key Points

• Fox Corporation agreed to acquire Roku for $160 per share ($96 cash plus 0.9693 Fox Class A shares), valuing it at approximately $22 billion enterprise value, an 11.4% premium to Roku's last close
• Existing Fox shareholders will own approximately 73% of the combined company and Roku shareholders 27%; the deal is expected to close in the first half of 2027 pending approvals
• Morgan Stanley provided $12 billion in committed bridge financing; Fox expects pro forma net leverage of about 2.8x and roughly $400 million in run-rate cost synergies
• The combination would become the third-largest US TV player by share of viewing, pairing Fox's NFL, MLB, Fox News, and Tubi with Roku's connected TV platform; Roku's platform segment was 87.5% of revenue at $4.1 billion last year

Key Entities

Evidence

Fox Corporation agreed to acquire Roku for $160 per share in a cash-and-stock deal that values the streaming platform at approximately $22 billion in enterprise value, the companies said on Monday.

Supports: Confirms the acquisition, per-share price, and enterprise value

Morgan Stanley Senior Funding has provided $12 billion in fully committed bridge financing to support the acquisition. The company said it expects pro forma net leverage of approximately 2.8x at closing and anticipate...

Supports: Documents the financing structure, leverage, and synergy expectations

Last year, Roku's platform segment accounted for 87.5% of total company revenue, or $4.1 billion, according to Bloomberg. Within that segment, digital advertising leads all revenue categories; in the first quarter alo...

Supports: Grounds Roku's platform and advertising revenue that Fox is acquiring