Overview
- The boards of Fox and Roku unanimously approved a definitive agreement announced Monday that values Roku at about $22 billion and offers $160 per share composed of $96 cash plus 0.9693 Fox Class A shares.
- Fox secured a $12 billion financing commitment from a Morgan Stanley affiliate to help fund the transaction and the companies expect roughly $400 million in annual cost synergies.
- The purchase pairs Fox’s live news, sports and ad-supported Tubi service with Roku’s operating system, devices and reach of more than 100 million households to give Fox direct distribution, viewer data and ad inventory.
- As part of the governance plan, Roku founder and CEO Anthony Wood will join Fox’s board at closing and the firms project the combined ownership split to be about 73% for current Fox shareholders and 27% for Roku shareholders.
- U.S. regulatory review is the principal outstanding milestone and the companies are targeting a close in the first half of 2027, a process likely to draw close antitrust scrutiny because the merged group would be a top-three U.S. TV player by audience share.