Fox Acquires Roku for $160 Per Share
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Fox Corporation (FOXA, FOX) and Roku (ROKU) announced they have entered into a definitive agreement under which FOX will acquire Roku for $160.00 per share in a combination of cash and FOX Class A common stock, valuing Roku at approximately $22B in enterprise value. The transaction combines FOX's leading sports, news and entertainment content and the Tubi service, with Roku's leading connected TV platform, The Roku Channel, first-party data and direct relationship with more than 100 million global streaming households. Together, FOX and Roku will create a scaled next-generation media and technology company positioned at the intersection of two of the most important forces reshaping video consumption: the enduring primacy of live sports and news, and the continued rise of streaming. FOX is acquiring Roku in a cash-and-stock transaction valued at $160.00 per ROKU share. FOX will pay $96.00 in cash and 0.9693 shares of FOX Class A common stock for each Roku Class A and Class B share outstanding immediately prior to the effective time of the merger. The stock consideration represents $64.00 per ROKU share based on a reference price of $66.03 per share, the 10-day volume-weighted average price of FOX Class A common stock as of June 10, 2026. Upon closing, existing FOX shareholders are expected to own approximately 73% of the combined company and Roku shareholders approximately 27%. The transaction has been unanimously approved by the Boards of Directors of both companies. The transaction is expected to strengthen FOX's long-term growth profile, accelerate its digital strategy, be accretive to free cash flow per share by the second full year after closing, and achieve approximately $400 million of run-rate cost synergies with additional revenue upside. FOX expects to fund the cash portion of the transaction consideration with a combination of new debt and cash on hand. FOX has obtained $12.0 billion of fully committed bridge financing from Morgan Stanley Senior Funding, Inc. At closing, the company expects pro forma net leverage to be approximately 2.8x, inclusive of 50% credit for run-rate cost synergies. Additional detail on financing terms will be included in the companies' required filings with the Securities and Exchange Commission. Roku Founder, Chairman and Chief Executive Officer Anthony Wood will have an ongoing role at the combined company and will join the FOX Board of Directors following the close of the transaction. The transaction is subject to customary closing conditions, including approvals by FOX and Roku shareholders, receipt of U.S. and certain non-U.S. regulatory approvals and other customary conditions. In connection with execution of the acquisition agreement, Anthony Wood and certain associated trusts and related entities that together hold at least a majority of the voting power of the Roku stock entered into a voting and support agreement agreeing to vote in favor of the transaction. LGC Holdco LLC also entered into a voting and support agreement with respect to the issuance of FOX shares in the transaction. The transaction is expected to close in the first half of calendar year 2027.
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Analyst Views on FOXA
Wall Street analysts forecast FOXA stock price to rise
13 Analyst Rating
6 Buy
7 Hold
0 Sell
Moderate Buy
Current: 51.320
Low
63.00
Averages
74.46
High
85.00
Current: 51.320
Low
63.00
Averages
74.46
High
85.00
About FOXA
Fox Corporation produces and distributes news, sports, and entertainment content through its primary domestic brands, including FOX Sports, Tubi Media Group, FOX Entertainment and FOX Television Stations. Its operating segments include Cable Network Programming, Television, Credible and the FOX Studio Lot. Cable Network Programming produces and licenses news and sports content distributed through traditional cable television systems, direct broadcast satellite operators and telecommunication companies, virtual multi-channel video programming distributors (virtual MVPDs) and other digital platforms. Television produces, acquires, markets and distributes programming through the FOX broadcast network, advertising supported video-on-demand service Tubi, approximately 29 full power broadcast television stations, including 11 duopolies, and other digital platforms. The FOX Studio Lot provides television and film production services. Credible is a United States consumer finance marketplace.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Roku's Acquisition Deal Value Diminishes Amid Market Volatility
- Diminished Deal Value: The acquisition agreement between Roku and Fox was initially valued at $160 per share, but due to a 22% drop in Fox's stock price within three days post-announcement, the deal value has plummeted to approximately $145.75, indicating a lack of market confidence in the transaction.
- Cash and Stock Structure: Fox is paying $96 in cash plus 0.9693 shares of Fox Class A common stock, and although the initial valuation was based on a volume-weighted average over the past 10 days, the actual deal value had already fallen below $160, reflecting concerns about Fox's future performance.
- Roku Stock Fluctuations: Roku's stock price dropped to $137.29 following the announcement, representing a 6% discount to the expected deal price, suggesting investor uncertainty regarding the timeline for deal closure and Fox's stock performance, which could impact Roku's market standing.
- Founder’s Commitment: Roku's founder and CEO Anthony Wood is fully backing the deal and will continue to serve on Fox's board post-acquisition, yet he controls about 55% of the voting power, leaving Roku with little room to maneuver against potential rival bidders.
See More
Roku and Fox Acquisition Deal Triggers Share Price Decline
- Acquisition Overview: Roku's acquisition deal with Fox claims a buyout price of $160 per share, valuing the company at approximately $22 billion; however, market reactions have been negative, with Roku's stock currently trading below $140, indicating a lack of confidence in the deal.
- Stock Price Volatility: Fox's shares plummeted 22% in the three days following the announcement, causing the deal's value to drop to $159.83 even before the announcement, reflecting market pessimism about Fox's future performance, which in turn affects Roku's stock price.
- Management Decisions: Roku's founder and CEO Anthony Wood is fully backing the deal and will continue to serve on Fox's board post-acquisition, controlling about 55% of Roku's voting power, making it nearly impossible for Roku to seek alternative competitive bids in the short term.
- Market Outlook: Despite Roku's strong performance over the past year and its best quarterly results in years, the decision to partner with Fox may limit its potential as an independent company, prompting investors to carefully assess future investment opportunities.
See More
Roku Accepts Fox's $22 Billion Buyout Offer
- Acquisition Context: Roku has accepted a $22 billion buyout offer from Fox, marking a significant merger between a former Netflix subsidiary and another media giant, despite Netflix's previous divestiture of its hardware operations due to regulatory concerns.
- Regulatory Review Expectations: Roku anticipates a smooth regulatory review process for the acquisition, although its historical ties with Netflix could raise antitrust scrutiny, highlighting the complexities and evolving nature of media mergers.
- Netflix's Acquisition Strategy: Netflix honed its M&A capabilities during its pursuit of Warner Bros. Discovery, demonstrating a willingness to maintain investment discipline when faced with high acquisition costs, ultimately leading to its decision to walk away from Roku.
- Future Acquisition Opportunities: Although Netflix did not formally bid for Roku, rumors suggest it may pursue an approximately $8 billion acquisition of Lionsgate Studios, reflecting its cautious yet exploratory approach in the M&A landscape.
See More
Netflix Maintains Discipline in Acquisition Negotiations
- Acquisition Strategy Shift: Following its failed bid for Warner Bros. Discovery, Netflix has opted to remain disciplined in future deal negotiations to avoid friction with existing partners like Sony and Amazon, thereby preserving its market position and collaborative relationships.
- Roku Acquisition Abandoned: Although Netflix was close to acquiring Roku, it ultimately chose to walk away due to potential antitrust scrutiny and the risk of complicating content production negotiations with Sony and Amazon, demonstrating a thoughtful approach to strategic acquisitions.
- Exploring Smaller Deals: Netflix is currently considering an approximately $8 billion acquisition of Lionsgate Studios, indicating that while the company is expanding its M&A horizons, it remains committed to not overpay for strategically complex acquisitions.
- Enhanced M&A Capability: Netflix's experience with the Warner Bros. acquisition attempt has strengthened its M&A capabilities, with co-CEO Ted Sarandos noting that the process of testing investment discipline has enabled the company to make rational decisions when faced with high-cost deals, avoiding emotional and ego-driven interference.
See More
Fox Corp's Strategic Acquisition of Roku for $22 Billion
- Acquisition Value: Fox Corp announced its intention to acquire streaming technology company Roku for $22 billion in stock and cash, indicating a strategic move to enhance its competitive position in the streaming market.
- Market Share: Roku holds a 36% market share in North America and 42% in Latin America, with its streaming technology used by over 100 million households worldwide, positioning Fox to capitalize on the rapidly growing streaming sector.
- Control of Content Distribution: By acquiring Roku, Fox will gain critical control over streaming content distribution; while regulatory scrutiny is expected, Fox aims to leverage this acquisition to boost advertising revenue and user engagement.
- Sports Content Synergy: Fox's sports division has a strong viewership base for major events, such as the highest-rated Super Bowl in 2025, and can utilize Roku's platform for cross-promotion, potentially increasing audience reach and advertising revenue.
See More
Fox to Acquire Roku for $22 Billion in Stock and Cash
- Acquisition Overview: Fox Corp. announced its intention to acquire streaming technology company Roku for $22 billion in stock and cash, aiming to strengthen its position in the rapidly evolving streaming market.
- Market Share Insights: Roku holds a 36% market share in North America and 42% in Latin America, with its streaming technology utilized by over 100 million households worldwide, highlighting its dominance in the connected TV space.
- Industry Trend Response: As the traditional cable TV market shrinks, Fox is securing its foothold in streaming by acquiring Roku, addressing subscriber losses faced by competitors like Comcast and Charter.
- Regulatory Scrutiny Expected: While the acquisition may not raise significant antitrust concerns, the U.S. Department of Justice is likely to scrutinize the merger to ensure it does not compromise the fairness of existing content distribution.
See More
Roku's Acquisition Deal Value Diminishes Amid Market Volatility
- Diminished Deal Value: The acquisition agreement between Roku and Fox was initially valued at $160 per share, but due to a 22% drop in Fox's stock price within three days post-announcement, the deal value has plummeted to approximately $145.75, indicating a lack of market confidence in the transaction.
- Cash and Stock Structure: Fox is paying $96 in cash plus 0.9693 shares of Fox Class A common stock, and although the initial valuation was based on a volume-weighted average over the past 10 days, the actual deal value had already fallen below $160, reflecting concerns about Fox's future performance.
- Roku Stock Fluctuations: Roku's stock price dropped to $137.29 following the announcement, representing a 6% discount to the expected deal price, suggesting investor uncertainty regarding the timeline for deal closure and Fox's stock performance, which could impact Roku's market standing.
- Founder’s Commitment: Roku's founder and CEO Anthony Wood is fully backing the deal and will continue to serve on Fox's board post-acquisition, yet he controls about 55% of the voting power, leaving Roku with little room to maneuver against potential rival bidders.
See More
Roku and Fox Acquisition Deal Triggers Share Price Decline
- Acquisition Overview: Roku's acquisition deal with Fox claims a buyout price of $160 per share, valuing the company at approximately $22 billion; however, market reactions have been negative, with Roku's stock currently trading below $140, indicating a lack of confidence in the deal.
- Stock Price Volatility: Fox's shares plummeted 22% in the three days following the announcement, causing the deal's value to drop to $159.83 even before the announcement, reflecting market pessimism about Fox's future performance, which in turn affects Roku's stock price.
- Management Decisions: Roku's founder and CEO Anthony Wood is fully backing the deal and will continue to serve on Fox's board post-acquisition, controlling about 55% of Roku's voting power, making it nearly impossible for Roku to seek alternative competitive bids in the short term.
- Market Outlook: Despite Roku's strong performance over the past year and its best quarterly results in years, the decision to partner with Fox may limit its potential as an independent company, prompting investors to carefully assess future investment opportunities.
See More
Roku Accepts Fox's $22 Billion Buyout Offer
- Acquisition Context: Roku has accepted a $22 billion buyout offer from Fox, marking a significant merger between a former Netflix subsidiary and another media giant, despite Netflix's previous divestiture of its hardware operations due to regulatory concerns.
- Regulatory Review Expectations: Roku anticipates a smooth regulatory review process for the acquisition, although its historical ties with Netflix could raise antitrust scrutiny, highlighting the complexities and evolving nature of media mergers.
- Netflix's Acquisition Strategy: Netflix honed its M&A capabilities during its pursuit of Warner Bros. Discovery, demonstrating a willingness to maintain investment discipline when faced with high acquisition costs, ultimately leading to its decision to walk away from Roku.
- Future Acquisition Opportunities: Although Netflix did not formally bid for Roku, rumors suggest it may pursue an approximately $8 billion acquisition of Lionsgate Studios, reflecting its cautious yet exploratory approach in the M&A landscape.
See More
Netflix Maintains Discipline in Acquisition Negotiations
- Acquisition Strategy Shift: Following its failed bid for Warner Bros. Discovery, Netflix has opted to remain disciplined in future deal negotiations to avoid friction with existing partners like Sony and Amazon, thereby preserving its market position and collaborative relationships.
- Roku Acquisition Abandoned: Although Netflix was close to acquiring Roku, it ultimately chose to walk away due to potential antitrust scrutiny and the risk of complicating content production negotiations with Sony and Amazon, demonstrating a thoughtful approach to strategic acquisitions.
- Exploring Smaller Deals: Netflix is currently considering an approximately $8 billion acquisition of Lionsgate Studios, indicating that while the company is expanding its M&A horizons, it remains committed to not overpay for strategically complex acquisitions.
- Enhanced M&A Capability: Netflix's experience with the Warner Bros. acquisition attempt has strengthened its M&A capabilities, with co-CEO Ted Sarandos noting that the process of testing investment discipline has enabled the company to make rational decisions when faced with high-cost deals, avoiding emotional and ego-driven interference.
See More
Fox Corp's Strategic Acquisition of Roku for $22 Billion
- Acquisition Value: Fox Corp announced its intention to acquire streaming technology company Roku for $22 billion in stock and cash, indicating a strategic move to enhance its competitive position in the streaming market.
- Market Share: Roku holds a 36% market share in North America and 42% in Latin America, with its streaming technology used by over 100 million households worldwide, positioning Fox to capitalize on the rapidly growing streaming sector.
- Control of Content Distribution: By acquiring Roku, Fox will gain critical control over streaming content distribution; while regulatory scrutiny is expected, Fox aims to leverage this acquisition to boost advertising revenue and user engagement.
- Sports Content Synergy: Fox's sports division has a strong viewership base for major events, such as the highest-rated Super Bowl in 2025, and can utilize Roku's platform for cross-promotion, potentially increasing audience reach and advertising revenue.
See More
Fox to Acquire Roku for $22 Billion in Stock and Cash
- Acquisition Overview: Fox Corp. announced its intention to acquire streaming technology company Roku for $22 billion in stock and cash, aiming to strengthen its position in the rapidly evolving streaming market.
- Market Share Insights: Roku holds a 36% market share in North America and 42% in Latin America, with its streaming technology utilized by over 100 million households worldwide, highlighting its dominance in the connected TV space.
- Industry Trend Response: As the traditional cable TV market shrinks, Fox is securing its foothold in streaming by acquiring Roku, addressing subscriber losses faced by competitors like Comcast and Charter.
- Regulatory Scrutiny Expected: While the acquisition may not raise significant antitrust concerns, the U.S. Department of Justice is likely to scrutinize the merger to ensure it does not compromise the fairness of existing content distribution.
See More
