Overview
- Roku accepted Fox’s $160 per share offer in a definitive agreement announced on June 15, creating a roughly $22 billion cash-and-stock transaction that aims to close in the first half of 2027.
- The deal structure includes about $96 in cash plus Fox stock and Fox has lined up roughly $12 billion of bridge financing to fund the transaction.
- Company leaders say Roku and Fox’s FAST service Tubi will remain separate and the combined firm will keep Roku as an open platform, but rivals, users and analysts warn the home screen or ad placement could be tilted toward Fox content.
- Markets reacted poorly to the announcement as investors worried about deal cost, added leverage and dilution, even as analysts note Roku’s strong ad revenues and reach — roughly 100 million households and about $613 million in Q1 revenue — make sudden partner exclusions unlikely.
- The acquisition reshapes streaming competition by pairing Fox’s live news and sports with Roku’s distribution and first-party viewing data, and reporting also linked Netflix to an unsuccessful approach for Roku in the run-up to the signed deal.