Fox buys Roku in USD22b streaming deal
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The news: Fox Corp agreed to acquire Roku in a cash-and-stock deal valued at about USD22 billion including debt.
The companies said in a statement the deal will blend Fox’s sports, news and entertainment channels, including the free, ad-supported Tubi, with Roku’s streaming platform of more than 100 million subscribers, creating the third-largest player in the US television market by share of viewing.
Fox will pay USD96 in cash and 0.9693 Fox Class A shares per Roku share, valuing the transaction at USD160 per Roku share.
Existing Fox shareholders are expected to own about 73% of the combined company and Roku shareholders about 27% once the deal closes.
Fox received USD12 billion in fully committed bridge financing from Morgan Stanley Senior Funding for the deal, the companies said in the statement. The deal is expected to close in the first half of 2027.
Allen & Company led financial advice to Fox, with Morgan Stanley and Goldman Sachs also advising. Weil, Gotshal & Manges provided legal counsel. Qatalyst Partners advised Roku, with Goodwin Procter as legal counsel.
What they said: “This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile,” Fox chief executive Lachlan Murdoch said in the statement.
Fox’s shares tumbled 15% after the announcement while Roku declined slightly.
Roku founder and chief executive Anthony Wood will stay on in the combined company and join the Fox board.
