Fox Corp (NASDAQ:FOXA) has agreed to acquire streaming platform Roku Inc (NASDAQ:ROKU) in a cash-and-stock deal valuing the company at approximately $22 billion in enterprise value, the companies announced Monday.
Under the terms of the agreement, Fox will pay $160 per share, comprising $96 in cash and 0.9693 Fox Class A shares. Fox shareholders will retain approximately 73% ownership of the combined company, with Roku shareholders holding the remaining 27%.
Fox has secured $12 billion in bridge financing from Morgan Stanley (NYSE:MS) to fund the cash portion of the transaction. The deal implies pro forma net leverage of approximately 2.8 times and is expected to generate around $400 million in run-rate cost synergies.
The transaction combines Fox's sports, news, and entertainment content and its Tubi streaming service with Roku's connected TV platform, The Roku Channel, first-party data, and direct relationship with more than 100 million global streaming households.
The deal is expected to close in the first half of 2027.
Fox Class A shares fell approximately 15.5% in Monday trading, while Roku shares slipped around 0.8%.