Overview
- Fox announced on June 15 that it will buy Roku for $160 a share in a cash‑and‑stock deal valued at about $22 billion with closing expected in the first half of 2027.
- The transaction gives Fox access to Roku’s platform that reaches roughly 100 million households and combines Roku’s ad tech and The Roku Channel with Fox’s live sports, news, and Tubi assets.
- Fox plans to cover the cash portion with about $12 billion of committed bridge financing from Morgan Stanley and forecasts $400 million a year in cost synergies plus free cash flow accretion by year two.
- Investors reacted negatively to the price and capital structure, pushing Fox stock sharply lower, and industry reporting says Netflix did preliminary due diligence but declined to bid over competition concerns.
- The companies have pledged to keep Roku open to partners, but shareholders and regulators will now weigh questions about platform neutrality, home‑screen control, dilution from the financing, and whether projected gains can be realized during integration