Fox is set to buy Roku in a $22 billion deal, the companies announced on Monday.
Together with Tubi, the combined company would hold the third-largest share of U.S. television viewership. Both Fox and Roku noted they intend to keep the latter as “an open, partner-friendly platform” in a move that bets on “the enduring primacy of live sports and news and the continued rise of streaming.”
Fox will acquire Roku for $160.00 per share in a combination of 60% cash and 40% Class A common stock, with Fox shareholders owning approximately 73% of the combined company and Roku shareholders at approximately 27%. The deal implies a total equity value of $25 billion and an enterprise value of $22 billion.
Fox CEO Lachlan Murdoch called the deal a “defining moment” for the company and a “deliberate and focused strategy” that it has executed for nearly a decade following its focus on live news and sports in 2019 and acquisition of Tubi in 2020.
“Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it,” Murdoch said. “This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile. And we are executing this acquisition from a position of financial strength – maintaining our investment grade balance sheet while providing our shareholders with an uninterrupted return of capital program in the form of share buybacks and dividends. Roku pioneered streaming TV and scaled it into a leading CTV platform. Together, we intend to lead its next chapter.”
Roku Stock Surges 20% on Sale Talks
Roku reaches more than 100 million streaming households and its free, ad-supported streaming service The Roku Channel made up 3% of TV viewership in March. In comparison, Tubi commanded a share of 2.2% for the month, while Fox’s total share sat at 7.2%.
“Over the past two decades, we’ve built Roku into the leading TV streaming platform, reaching more than 100 million households globally and reshaping how people discover and enjoy entertainment,” Roku founder and CEO Anthony Wood said “I’m incredibly proud of what our team has built, and the combination with Fox is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers. That’s why our Board of Directors unanimously determined after concluding its strategic review process that this transaction offers a significant premium to Roku shareholders while also providing them with the opportunity to participate in the compelling future upside of the combined company. I couldn’t be more excited about what we’ll accomplish together.”
Upon closing, Wood will join the Fox board of directors and remain in an undisclosed, ongoing role. The deal is expected to close in the first half of 2027, pending regulatory approval.
