Fox Corp. has announced its acquisition of Roku for $22 billion, offering $160 per share—comprising $96 in cash and 0.9693 shares of Fox Class A stock. This deal has affected stock prices, causing Fox shares to drop by 13% and Roku shares to rise by 2.8%. The transaction is set to close in the first half of 2027 and aims to save about $400 million annually. Analysts note that this acquisition exposes Fox to the low-margin OEM business through Roku, which generates revenue mainly from ads and subscriptions related to its streaming devices. The merger will position the combined entity as the third-largest player in U.S. television.

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Why Fox Stock Is Tumbling After $22 Billion Roku Deal

By Adam Clark

Updated June 15, 2026, 11:09 am EDT / Original June 15, 2026, 7:26 am EDT

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FOXA

ROKU

Roku was previously reported to be in sale talks with at least one major U.S. media company. (Photograph by Patrick T. Fallon/Bloomberg)

Key Points

About This Summary

Fox Corp. agreed to acquire streaming technology maker Roku for $160 per share, valuing the deal at approximately $22 billion.
The acquisition involves $96.00 cash and 0.9693 Fox Class A shares per Roku share; Roku shares rose 2.8%, while Fox shares fell 13%.
Roku provides streaming devices and an operating system, generating revenue from ads and subscriptions, and will remain an open platform.

Fox Corp

FOXA\ \ -16.07%. stock tumbled on Monday after it agreed to buy streaming technology maker Roku ROKU\ \ -0.73% for $22 billion for stock and cash.

In midmorning trading, Fox Class A shares were down 19% at $53.60. Roku shares were off 2.2% at $140.44. The share price for the deal is $160.

Fox will pay $96 in cash and exchange 0.9693 of a share of Fox class A common stock for each Roku class A and Class B share. The stock consideration is worth $64 a Roku share, based on the 10-day volume-weighted average price of Fox’s shares as of June 10, last Wednesday.

Fox expects to fund the cash portion with $12 billion in new debt, as well as cash on hand. It estimates the combination can save about $400 million in annual costs after closing, which is expected in the first half of 2027.

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Fox is paying a hefty premium for Roku—34% to where it stood before news of the deal. That implies taking on debt, as well as a change in business profile.

“Roku exposes Fox in a significant way to the low-margin OEM [original equipment manufacturing] business, which has many different dynamics when compared to the current version of Fox,” wrote analysts at Madison Wall, an advisory and consulting firm.

“Roku’s revenues are by now majority advertising-dependent, but its costs primarily relate to manufacturing and related software development as well as physical marketing and distribution of its devices,” the team said.

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Roku makes streaming devices and licenses its operating system to TV makers, which allows them to offer platforms like Apple TV, Netflix, and Comcast’s Peacock. The company receives advertising revenue and gets a cut of subscription fees for channels and streaming services that are bought through its platform.

The combined company will become the third largest player in U.S. television by share of viewing.

“FOX and Roku are committed to continuing to operate Roku as an open, partner-friendly platform and to the continued ubiquitous distribution of FOX content,” the companies said in a statement.

The relatively muted reaction in Roku shares comes after the stock already gained 20% on Friday after initial reports that the company was in sale talks. Shareholders may also be disappointed by not receiving an all-cash offer.

Fox and Barron’s parent News CorpExternal link share common ownership.

Write to Adam Clark at adam.clark@barrons.comExternal link

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