Roku agrees to $22B sale to Fox, stock hits four-year high

Fox Corporation just agreed to buy Roku for roughly $22 billion in enterprise value, sending Roku shares to their highest level in four years. The deal, announced on June 15, values each Roku share at $160, a price that combines $96 in cash with approximately 0.97 shares of Fox Class A stock.

The transaction is expected to close in the first half of 2027, pending both regulatory and shareholder approval.

What Fox is actually buying

Fox is acquiring a connected TV platform that reaches over 100 million streaming households. Roku’s software powers smart TVs and streaming devices across the US, controlling what users see when they turn on their TV, which apps get promoted, and which ads get served.

Fox already operates Tubi, its ad-supported streaming service. Bolting Roku’s advertising technology and massive household footprint onto Fox’s existing portfolio of live sports, news broadcasting, and Tubi creates a vertically integrated media company that owns the content, the distribution platform, and the ad-tech stack connecting the two.

The deal structure and timeline

The $160 per-share price breaks down into two components. Shareholders get $96 in cash plus about 0.97 shares of Fox Class A stock for every Roku share they hold.

No regulatory or shareholder approvals have been secured yet. The transaction remains entirely pending. Fox Corporation, predominantly controlled by the Murdoch family, has centered its media strategy around three pillars: live sports, news, and ad-supported streaming.

Wall Street analysts have raised concerns about integration complexity and whether $22 billion represents fair value for a platform company that has struggled with profitability.

What investors should watch

The first half of 2027 closing timeline gives a wide window, which suggests both companies anticipate a regulatory review process that isn’t a rubber stamp.

Integration risk is a key concern. Roku’s value is tied to its independence as a neutral platform. TV manufacturers embed Roku’s operating system precisely because it isn’t owned by a content company with competing interests. Once Fox owns Roku, every competing streaming service, Netflix, Disney+, Amazon Prime Video, has to decide whether they’re comfortable running their apps on a platform controlled by a rival.

The advertising revenue opportunity is the bull case. Fox combining Tubi’s content with Roku’s ad-tech and 100 million household reach could create one of the largest connected TV advertising platforms in the US.

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