Fox Agrees to Acquire Roku For $22 Billion to Accelerate Massive Television Streaming Consolidation

Key Stats for Roku Stock

• Price change for Roku stock in last 5 days: 17%
• $ROKU Share Price as of Jun. 17: $137
• 52-Week High: $149
• $ROKU Stock Price Target: $149

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What Happened?

Roku (ROKU) stock is in focus this week after Fox Corporation announced it has reached a definitive agreement to acquire Roku for $160 per share in a cash-and-stock deal worth roughly $22 billion.

Fox will pay $96 in cash and 0.9693 shares of FOX Class A stock for each Roku share. The cash portion will be funded through approximately $8 billion in new debt plus cash on hand.

At close, existing Fox shareholders will own about 73% of the combined company, with Roku shareholders holding the remaining 27%.

Roku stock had already jumped about 20% ofollowing initial reports of a potential deal. On the day of the announcement, it fell roughly 2% as investors digested the terms.

Fox stock dropped about 17% on the news, reflecting the size of the transaction and shareholder dilution.

The deal brings together two very different but complementary businesses. Fox owns live news, sports broadcasting, and a free streaming service, Tubi.

Roku is the leading connected TV platform in the U.S., reaching over 100 million streaming households globally with 145 billion hours of annual engagement.

Fox CEO Lachlan Murdoch called it a “defining moment” for the company.

He said Fox entered this deal from a position of strength, with both companies sharing a focus on advertising revenue — an area increasingly central to media company strategy.

Tubi and The Roku Channel will remain separate services after close. Murdoch described them as “incredibly complementary” with only about one-third audience overlap.

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What the Market Is Telling Us About Roku Stock

Roku stock reflects a clean acquisition premium. The $160 per share offer represents a significant premium over where Roku stock was trading before deal reports surfaced.

Roku CEO Anthony Wood said the deal allows Roku to “move faster and smarter” and accelerate its long-term strategy with FOX’s resources.

The company just hit 100 million streaming households, Q1 platform revenue grew 28% year-over-year, and free cash flow was the second highest on record last quarter.

The deal is expected to close in the first half of 2027 pending regulatory approval.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!