Roku to be Acquired by Fox Corporation for $22 Billion in Cash and Stock
Summary
Roku, Inc. has entered into a definitive agreement to be acquired by Fox Corporation for $22 billion in a cash and stock transaction, marking a major strategic shift for both companies.
Key Events
-
Definitive Merger Agreement
Roku, Inc. has entered into an Agreement and Plan of Merger with Fox Corporation, under which Fox will acquire Roku for approximately $22 billion in enterprise value.
-
Acquisition Terms
Roku shareholders will receive $96.00 in cash and 0.9693 shares of Fox Class A common stock for each Roku share. The stock consideration is valued at $64.00 per ROKU share, based on Fox's 10-day VWAP of $66.03 as of June 10, 2026. The total per share consideration is $160.00, representing a premium over Roku's current trading price near its 52-week high.
-
Strategic Rationale & Synergies
The combination aims to create a scaled media and technology platform, uniting Fox's live content (sports, news) with Roku's leading connected TV platform and over 100 million global streaming households. The transaction is expected to be accretive to Fox's free cash flow per share by the second full year post-closing and achieve approximately $400 million in run-rate cost synergies.
-
Leadership & Shareholder Support
Roku Founder, Chairman, and CEO Anthony Wood will join the Fox Board of Directors. Voting and support agreements have been secured from Anthony Wood and related trusts (representing 55% of Roku's voting power) and LGC Holdco LLC (representing 38.7% of Fox's voting power), facilitating shareholder approvals.
Analysis
This filing announces a definitive merger agreement where Fox Corporation will acquire Roku for approximately $22 billion. This is a transformative event for Roku, offering its shareholders a significant premium over the current trading price and an opportunity to participate in the combined entity. The strategic rationale focuses on creating a scaled media and technology platform, combining Fox's content with Roku's streaming reach, and is expected to generate substantial synergies and be accretive to Fox's free cash flow.
At the time of this filing, ROKU was trading at $146.94 on NASDAQ in the Technology sector, with a market capitalization of approximately $21.2B. The 52-week trading range was $73.91 to $148.88. This filing was assessed with positive market sentiment and an importance score of 10 out of 10.