Fox Corporation announced today that it has completed its acquisition of Roku, combining a traditional media company with one of the largest streaming platforms in the United States. The deal closes a major consolidation in the television industry, merging Fox’s sports, news and entertainment content with Roku’s open platform that reaches over 100 million households worldwide.
Under the terms of the agreement, Roku stockholders received $95.30 in cash and 0.9799 shares of Fox Class A common stock for each Roku share they owned. The transaction valued Roku at a level that gives Fox stockholders approximately 74 percent ownership of the combined company, with former Roku stockholders holding the remaining 26 percent. Roku shares ceased trading on the Nasdaq following the completion.
Fox expects to achieve approximately $400 million in annual cost savings within two years following the close, with additional revenue potential. The company anticipates the deal will contribute positively to free cash flow per share by the second full year after closing.
The acquisition represents Fox’s shift toward high-growth streaming and connected television businesses. The company’s portfolio now includes Roku, Tubi, Fox One, and other digital properties alongside its traditional broadcast operations.
“The closing of this acquisition advances the long-term strategy of FOX. Beginning today, our top priority for the combined company is to continue to relentlessly serve audiences and partners, while reinforcing the openness and choice that is the essence of the Roku platform. Our shared entrepreneurial passion and clear conviction toward building the future together with our new Roku colleagues gives us great confidence in the opportunities ahead of us,” said Lachlan K. Murdoch, executive chair and chief executive officer of Fox Corporation.
Roku founder Anthony Wood will join Fox’s board of directors and serve as co-chair of the newly formed Fox Digital Platforms division, which encompasses Roku, Tubi, Fox One, Red Seat Ventures and other digital products. Paul Cheesbrough assumes the role of co-chair and chief executive of the division.
Wood stated: “We started Roku more than two decades ago to give people a better way to watch TV, and that mission doesn’t change today. What does change is our reach and resources. FOX has a deep respect for Roku’s culture and wholly shares our commitment to staying open to every content partner. Our teams will keep building and innovating as they always have, now with the support and capabilities of FOX behind us. I’m proud of what Roku’s employees have built, and I’m excited about what comes next.”
Fox said the combination positions the company as a leading streaming business in the United States, with the ability to serve viewers, advertisers and content partners at greater scale. The deal accelerates Fox’s digital strategy at a time when traditional television audiences continue to decline and streaming services command increasing advertising budgets.
The company emphasized that Roku will continue to operate as an open ecosystem serving the broader streaming industry. Roku’s platform allows viewers access to thousands of apps and channels across the streaming television ecosystem, a characteristic Fox said it aims to preserve.
The transaction had been announced earlier, but regulatory reviews and shareholder approval delayed completion. Fox financed the deal through a combination of cash and stock, with Morgan Stanley leading debt financing efforts.