Betting 30 Trillion Won in the Streaming War: Fox Pursues Acquisition of Roku

Fox Corporation (NASDAQ: FOXA) has agreed to acquire Roku, Inc. (NASDAQ: ROKU) in a cash-and-stock deal valued at $160 per share. The transaction implies an equity value of approximately $25 billion (about KRW 33 trillion) and an enterprise value of roughly $22 billion (about KRW 29 trillion). Under the agreement, Roku shareholders will receive $96 in cash plus 0.9693 newly issued Fox Class A shares for each Roku share they own. Upon closing, ownership will be rebalanced to roughly 73% for Fox shareholders and 27% for former Roku shareholders. Fox intends to fund the deal through a combination of new equity issuance, debt financing related to the transaction, and its existing cash reserves. The company is targeting a net leverage ratio (net debt/EBITDA) of about 2.8×, annual cost synergies of around $400 million (approximately KRW 500–600 billion), and an increase in free cash flow within two years.

The Murdoch family–controlled entities, including Cruden 2 and LGC Holdco, which collectively hold about 38.7% of Fox’s Class B shares (approximately 85 million shares), have entered into a voting and support agreement. They will retain their shares, vote in favor of the proposed equity issuance needed to finance the acquisition, and oppose any competing offers. These shares are subject to transfer restrictions until shareholder approval is obtained, and no further purchases or sales have been disclosed.

According to Fox’s press release and major international media, this marks the largest deal in Fox’s history. It will combine Fox’s sports, news and entertainment assets—along with its free ad-supported streaming service, Tubi—with Roku’s connected-TV platform, which reaches over 100 million households. The transaction is expected to close by the first half of 2027, pending regulatory approvals and the green light from both companies’ shareholders.

Fox Corporation is a U.S. media and entertainment group that owns the FOX broadcast network, sports channels, Fox News Channel and the free streaming service Tubi. In recent years, Fox has focused on a portfolio centered on sports, news and ad-supported streaming. Roku is a leading provider of connected-TV operating systems and streaming devices in the U.S. The combination is poised to accelerate competition across both traditional broadcasting and streaming platforms.