Fox Corp has agreed to acquire streaming platform Roku in a definitive cash-and-stock deal valued at approximately $22 billion, the companies said on Monday. The transaction, announced on June 15, 2026, will be completed in an all-cash, all-stock arrangement with Roku shareholders receiving $160 per share.
The acquisition comes after Netflix reportedly lost a competing bid for Roku, which has grown into a dominant player in connected TV advertising and streaming services. Roku’s platform revenue rose 25% year-over-year in the second quarter of 2026, while adjusted EBITDA reached $254 million, exceeding prior guidance of $170 million. The company’s Q2 revenue totaled $1.355 billion, up 21.9% from the same period a year earlier. Roku’s market capitalization stood at $23.5 billion at the time of the announcement, with shares trading at $158.24.
Fox Corp’s offer underscores its strategic shift toward direct-to-consumer platforms, including its own Tubi and Fox One services. Tubi reported a record 110 million monthly active users, while Roku’s first-party viewing data from over 100 million global households provides a valuable asset for targeted advertising and content distribution. The deal is expected to close in the first half of 2027, pending regulatory approval and customary closing conditions.
Analysts responded positively to the acquisition. Wolfe Research raised its price target on Fox Corp to $93 from $74, estimating $0.5 billion in incremental EBITDA synergies by 2029. JPMorgan upgraded Fox Corp to Overweight with a $82 target, citing benefits from Roku’s scale and the economics of major sporting events such as the FIFA World Cup. Wells Fargo also upgraded Fox Corp to Overweight, setting a $80 price target.
Fox Corp’s stock has gained 25% over the past month and 16.4% over the past year, closing at $69.16 on Monday. The company’s market capitalization stands at $29.1 billion, with a forward price-to-earnings ratio of 10.8x and a trailing price-to-earnings ratio of 16.3x. Free cash flow yield is 5.4%, while the enterprise value-to-EBITDA multiple is 7.7x. Analysts note a compressed net income margin, which declined from 13.9% to 9.8% in the fiscal year 2026.
Fox Corp’s revenue has grown 22.5% compounded over three fiscal years, rising from $13.98 billion to $17.13 billion. EBITDA increased from $2.83 billion to $3.88 billion during the same period, with gross margins improving from 35.0% to 36.6%. The company’s debt-to-equity ratio stands at 65.1%.
