Is the Streaming Landscape Shifting? Media Giant Bets on $30 Billion Roku Acquisition

Fox Corporation (NASDAQ: FOXA) has agreed to acquire streaming-platform operator Roku for $160 per share, implying an equity value of about $25 billion and an enterprise value of roughly $22 billion. Under the deal, Roku shareholders will receive $96 in cash plus 0.9693 shares of Fox Class A stock for each Roku share they own.

Approximately 60 percent of the deal consideration will be paid in cash and 40 percent in stock. Financing will come from new equity issuance, new debt, existing cash on the balance sheet and a bridge loan facility capped at about $12 billion. At close, Fox aims for pro forma net leverage of 2.8 times last-twelve-month EBITDA, annual cost synergies of $400 million, incremental revenue benefits and an increase in free cash flow within two years.

Subject to regulatory and shareholder approvals, the transaction is expected to close in the first half of 2027. After closing, existing Fox shareholders will own approximately 73 percent of the combined company, and Roku shareholders about 27 percent. Roku founder Anthony Wood will continue in his current role and join Fox’s board of directors.

Certain related parties— including Chrooden 2, LGC Holdco and Lachlan Murdoch—hold about 85.37 million Fox Class B shares (roughly 38.7 percent of outstanding Class B stock). They have agreed to support the Fox share issuance, oppose any competing proposals and refrain from selling their shares ahead of the shareholder vote under a new voting and support agreement.

On June 30, 2026, Fox also entered into a new term-loan credit facility with a banking syndicate led by Morgan Stanley, Citigroup, Deutsche Bank, Goldman Sachs and J.P. Morgan to streamline the acquisition financing structure and related covenants.

In its third quarter of fiscal 2026, Fox reported results that beat market expectations, yet its share price briefly fell to a 52-week low of $52.98 after the Roku deal was announced, reflecting heightened volatility. UBS has maintained a “Buy” rating, and Wells Fargo recently raised its price target, citing double-digit advertising growth in Fox’s television business.

Fox is a diversified media company that owns a U.S. broadcast network, news and sports channels, local stations and the ad-supported streaming service Tubi. By acquiring Roku, Fox seeks to build a “full-stack” video ecosystem—spanning ad-supported streaming and connected-TV platforms—and position itself among the top three U.S. TV networks by audience share.