Overview
- Fox and Roku announced a definitive agreement on Monday, June 15, that values Roku at $160 per share, with Roku shareholders receiving $96 in cash plus 0.9693 Fox Class A shares for each Roku share.
- Both companies’ boards unanimously approved the transaction and Fox secured $12.0 billion of committed bridge financing from Morgan Stanley to fund the cash portion of the purchase.
- The firms expect the merger to close in the first half of 2027 pending shareholder votes and U.S. and certain non-U.S. regulatory approvals, and key Roku voting holders have signed support agreements in favor of the deal.
- Fox projects roughly $400 million in annual run-rate cost synergies and says the combination will improve targeting, home-screen discovery and monetization by combining Fox content and Tubi with Roku’s platform and first-party data.
- Markets reacted negatively for Fox and mixed for Roku with Fox shares falling sharply after the announcement, and the deal raises likely regulatory scrutiny over platform neutrality, data use and partner access even as the companies pledge to keep Roku open.