Fox makes its biggest streaming bet in a $22B deal to buy Roku

Fox Corp. has agreed to buy Roku in a cash-and-stock deal valued at about $22 billion, a move that would bring together Fox’s news, sports, and entertainment assets with Roku’s connected-TV platform and The Roku Channel, according to Fox Corporation.

Under the agreement, Roku shareholders would receive $160 per share, made up of $96 in cash and 0.9693 shares of Fox Class A common stock, the company confirmed.

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Fox said the deal is designed to expand its reach in streaming and connected TV as more viewers shift away from traditional pay television.

What the deal changes

Roku reaches more than 100 million global streaming households, and Fox said the combined business would improve its advertising reach and data-driven targeting, according to Reuters.

Fox confirmed it plans to keep Tubi and The Roku Channel as separate offerings, and the companies expect about $400 million in annual cost savings after the merger.

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The cash part of the deal will be funded with $12 billion in new debt and existing cash, while Fox shareholders would own about 73% of the combined company if the transaction closes, according to the company announcement.

Both companies said they expect the deal to close in the first half of 2027, pending approvals.