Overview
- Fox agreed to buy Roku for $160 per share in a cash-and-stock deal that values the company at about $22 billion and will leave Fox shareholders owning roughly 73 percent of the combined firm.
- The purchase price is split between $96 in cash and 0.9693 Fox Class A shares per Roku share, and Fox has lined up roughly $12 billion in bridge financing to fund the cash portion.
- Investors reacted negatively to the announcement, with Fox Class A shares plunging and some analysts maintaining sell ratings while warning that the roughly $400 million in annual cost savings Fox projects may take years to materialize.
- The transaction gives Fox direct access to Roku’s operating system, The Roku Channel and data from more than 100 million households, a combination that could boost ad targeting, home-screen promotion of Fox services and distribution for Fox content.
- The deal must clear shareholder and regulatory approvals before closing in the first half of 2027, and rivals, consumer groups and antitrust watchers will monitor whether Roku stays open to competing streaming services after the merger.