Fox Corp. has announced its agreement to acquire Roku for $160 per share, totaling around $22 billion in a cash and stock deal. This acquisition will be financed through a combination of Fox's cash reserves and a $12 billion loan. Following the announcement, Fox's stock fell about 13% in premarket trading, while Roku's shares increased by approximately 2%.
The merger aims to integrate Fox's news and sports channels, along with its ad-supported streaming service Tubi, with Roku's streaming devices and The Roku Channel.
Fox CEO Lachlan Murdoch described the acquisition as a 'defining moment' for the company, which has shifted its focus towards live news and sports since divesting its entertainment assets to Disney in a $71 billion deal seven years ago.
Fox anticipates around $400 million in cost synergies from the merger, with existing Fox shareholders retaining about 73% ownership of the new entity and Roku shareholders holding 27%. The deal has received board approval from both companies and is expected to finalize in the first half of 2027