Fox to acquire Roku in $22B streaming media consolidation
- Fox executed a definitive agreement to acquire Roku, Inc. for $160.00 per share in a cash-and-stock transaction valuing the streaming platform at an enterprise value of approximately $22 billion.
- The combination unites premium live content with digital distribution, positioning the combined entity as the third-largest television platform in the United States by overall share of viewing.
- Fox is absorbing Roku's interface to merge its active sports, news, and entertainment broadcast reach with more than 100 million global streaming households.
Fox (NASDAQ:FOX) signed a definitive merger agreement to buy Roku (NASDAQ:ROKU) for $160 per share to combine traditional broadcasting assets with connected television distribution infrastructure.
The $22 billion acquisition framework leverages the combined power of Fox Corporation's live assets and the ad-supported Tubi streaming service with The Roku Channel platform.
Under the transaction parameters, Roku shareholders will receive $96 in cash and 0.9693 shares of Fox Corporation Class A common stock for each individual share they hold.
Following the announcement, the Fox's share price was down at $31.42.
The corporate management group plans to secure approximately $400 million in annualized run-rate cost synergies while keeping its current shareholder capital return program completely uninterrupted.
Fox forecasts the transaction to close in the first half of calendar year 2027, financed via cash on hand and newly issued debt that will result in a pro forma net leverage ratio of approximately 2.8x.
