Fox Corporation announced its agreement to acquire Roku in a transaction valued at roughly $22 billion, offering $160 for each Roku share.
Deal Structure
The consideration combines $96 in cash with 0.9693 shares of Fox Class A common stock for each Roku share, translating to an 11.4 % premium over Roku’s last closing price of about $143. Fox shareholders will own approximately 73 % of the combined entity, while Roku shareholders will retain a 27 % stake. The arrangement also includes a $12 billion bridge loan arranged by Morgan Stanley to support the transaction.
Strategic Rationale
CEO Lachlan Murdoch described the acquisition as a defining moment that extends Fox’s strategic initiatives developed over the past decade. He emphasized that the merger will broaden Fox’s reach into high‑growth media segments and generate a step‑change in its expansion trajectory. Investors are watching the deal closely, noting its potential to reshape the streaming market and attract blockchain and crypto advertisers seeking broader distribution.
Timeline and Financial Outlook
The parties expect to close the transaction in the first half of 2027, subject to regulatory approval. Pro‑forma calculations forecast a net leverage of about 2.8 × and anticipated run‑rate cost synergies near $400 million. The combined company aims to leverage its expanded platform to capture new revenue streams, including opportunities linked to the growing crypto and blockchain ecosystem.