Fox Corporation and Roku, Inc. have entered into a definitive merger agreement in a massive media consolidation play. Fox will acquire the streaming platform giant for $160 per share in a cash-and-stock transaction. The deal values Roku at a total equity value of $25 billion and an enterprise value of approximately $22 billion, uniting a powerhouse of live sports and news with a streaming ecosystem that reaches more than 100 million households globally.
Under the terms of the agreement, Roku shareholders will receive $96.00 in cash and 0.9693 shares of Fox Class A common stock for each share they own. This split represents a consideration mix of 60% cash and 40% stock. The stock portion relies on a reference price of $66.03, which reflects Fox’s 10-day volume-weighted average price as of June 10, 2026. Upon the completion of the transaction, existing Fox shareholders will own roughly 73% of the combined entity, while Roku shareholders will retain the remaining 27%.
The strategic logic behind the acquisition centers on creating a scaled media and technology platform capable of cross-environment monetization. Fox has historically anchored its business model around high-value live events, commanding a massive share of top U.S. telecasts through its relationships with the NFL, MLB, NASCAR, and Fox News. By absorbing Roku, Fox secures immediate, direct-to-consumer access to over half of all broadband households in the United States. The merger will combine Fox’s ad-supported streaming service, Tubi, with The Roku Channel, positioning the unified company as the third-largest player in U.S. television by overall viewing share.
Leadership from both organizations expressed strong alignment on the future of the platform. Fox CEO Lachlan Murdoch noted that the acquisition positions the network across high-growth connected TV verticals without disrupting Fox’s current shareholder capital return programs. Meanwhile, Roku Founder and CEO Anthony Wood characterized the deal as an extraordinary opportunity to scale faster and innovate for advertisers and viewers alike. Wood, who commands a majority of Roku’s voting power alongside associated trusts, has entered a formal support agreement to vote in favor of the transaction. He will join the Fox Board of Directors and maintain an ongoing leadership role post-closing.
Financially, Fox plans to cover the cash requirements of the deal using a mixture of existing balance sheet cash and new debt issuance. The company has secured a fully committed $12 billion bridge financing facility from Morgan Stanley Senior Funding, Inc. Management expects the combined company’s net leverage to land at approximately 2.8x last-twelve-months EBITDA at closing, allowing Fox to maintain its current investment-grade ratings. The integration is forecasted to generate $400 million in run-rate cost synergies and run accretive to free cash flow per share by the second full year of combined operations.
The transaction has received unanimous approval from the boards of directors at both companies. It remains subject to customary closing conditions, including regulatory reviews and approvals from both sets of shareholders. The companies anticipate completing the merger in the first half of calendar year 2027.
