Fox Corporation Agrees to Acquire Roku in Historic $22 Billion Cash-and-Stock Deal 

New York, NY and San Jose, CA — The age of the dumb television is over. Has been for a while. But the age of media legacy companies simply begging for prime real estate on your smart TV’s home screen? That’s apparently wrapping up, too. Why beg for an app icon when you can just buy the entire operating system?

In a stunning, landscape-shifting move, Fox Corporation has entered into a definitive agreement to acquire Roku, Inc. in a cash-and-stock transaction valuing the streaming pioneer at a whopping $22 billion in enterprise value. It is—how should I put this—an absolute game-changer that redraws the battle lines of modern media.

Let’s face it, we all kind of saw some form of consolidation coming eventually, even if we didn’t expect a legacy broadcast giant to swallow the hardware king of the living room.

Under the terms of the deal, FOX is paying $160.00 per share—consisting of $96.00 in cold hard cash and 0.9693 shares of FOX Class A common stock for every share of Roku.

The stock portion represents $64.00 per share, calculated using a 10-day volume-weighted average price of FOX stock ending June 10, 2026.

Once the dust settles in the first half of 2027, existing Fox shareholders will own roughly 73% of the combined entity, while Roku’s backers will hold the remaining 27%.

This isn’t just a financial play to make Wall Street happy; the operational logic is incredibly aggressive. Fox has spent nearly a decade reorienting itself around live sports (think NFL, MLB, NASCAR, and the FIFA World Cup) and heavy-hitting live news. But live broadcast assets are only as good as your distribution.

By swallowing Roku, Fox instantly gains a direct, first-party digital relationship with over 100 million global streaming households. On a pro forma basis, this unholy alliance of old-school broadcasting and new-school connected TV (CTV) instantly turns the combined company into the third-largest television player in the United States by overall viewing share.

Where this gets really interesting—and perhaps a bit scary for competitors—is the consolidation of the free ad-supported streaming television (FAST) market. By combining Tubi (which Fox bought in 2020 and grew into a massive cash cow) with The Roku Channel, Fox now controls an absolute monopoly on free, ad-supported digital entertainment.

It’s a double-sided trap for advertisers: Fox has the high-value, must-watch live events, and Roku has the granular user data and targeting plumbing to serve highly specific ads to the millions of cord-cutters who refuse to pay for cable.

To fund the massive cash portion of the acquisition, Fox has secured a colossal $12.0 billion bridge financing facility from Morgan Stanley Senior Funding, Inc.

Despite taking on this mountain of debt, Fox’s Chief executive Lachlan K. Murdoch was quick to emphasize that the company’s capital return program—meaning dividends and stock buybacks—will continue completely uninterrupted, preserving their prized investment-grade credit rating.

Meanwhile, Roku’s founder and CEO, Anthony Wood, who holds a majority of the voting power, has agreed to vote in favor of the deal. He’ll also be taking a seat on the Fox Board of Directors to help guide the next chapter.

Both companies insist that Roku will continue to operate as an open, partner-friendly platform. They want us to believe they won’t favor Fox content or push rivals to the bottom of the user interface. But I mean, look… let’s be realistic. When you own the digital storefront, the temptation to put your own products in the display window is virtually impossible to resist. This merger is a bold, defensive maneuver by Fox to secure its future in a post-cable world.

Whether it actually benefits the consumer or just creates another locked-down media ecosystem is something we will discover when the deal officially closes next year. Until then, you can dive into the initial investor filings and webcasts directly on the Fox Corporation Investor Relations Portal.