Roku Sells To Fox In $22 Billion Streaming Shock

Roku Inc. (NASDAQ: ROKU) has agreed to be acquired by Fox Corporation (NASDAQ: FOXA) (NASDAQ: FOX) in a cash-and-stock transaction valued at approximately $22 billion in enterprise value. Under the terms, Roku shareholders will receive $160 per share — consisting of $96 in cash and 0.9693 shares of Fox Class A common stock for each Roku share. After closing, existing Fox shareholders are expected to own about 73% of the combined company, with Roku shareholders owning roughly 27%. The transaction is expected to close in the first half of calendar year 2027. The deal pairs Roku's connected-TV platform, The Roku Channel, first-party data capabilities, and relationships with more than 100 million streaming households globally with Fox's live sports, news, and entertainment portfolio — including NFL, MLB, NASCAR, Big Ten, and FIFA World Cup rights, FOX News, FOX Business, and Tubi. On a pro forma basis, the merged company is expected to become the third-largest player in U.S. television by share of viewing. Roku will continue operating as an open, partner-friendly platform, and Fox content will remain broadly distributed. Roku founder, chairman and CEO Anthony Wood is expected to continue in a role at the combined company and join the Fox board after closing. Fox expects the deal to be accretive to free cash flow per share by the second full year after closing and to generate roughly $400 million in annualized cost synergies. Fox reported $3.601 billion in cash and cash equivalents as of March 31, 2026. Roku recently posted first-quarter revenue of $1.248 billion, up 22%, and guided second-quarter revenue to $1.295 billion, above the $1.285 billion Street view. The company raised its full-year revenue outlook to $5.535 billion, including $5.0 billion in Platform revenue and $535 million in Devices revenue. Roku shares were trading around $147.17 following the announcement, while Fox shares were down about 9.49% at $53.33 in Monday premarket trading. #Roku #Fox #StreamingWars 🖥️ Try Benzinga Pro FREE with a 14 day trial: https://www.benzinga.com/pro/register 📈 Take your trading to the next level with our suite of premium research services and tools: https://www.benzinga.com/services 🌐 Find more market-moving insights at https://www.benzinga.com — your one-stop destination for the latest financial news, data, and expert analysis to stay ahead of the markets. 📲 Follow us on socials @benzinga ------------------------------------------------------------------------------------ 🔹Free Benzinga Webinars: https://www.youtube.com/watch?v=LQ2jOJNkDfI&list=PL4k0fH8EgI3YTdqniRmxrvz97w3IQ61rD 🔹Benzinga Pro Tutorials: https://www.youtube.com/watch?v=a2FaHhLIrks&list=PL4k0fH8EgI3YMwoBMFXGvVMkgixFymmei&pp=gAQB 🔹Earnings Calls: https://www.youtube.com/watch?v=C2-AoCw64Ok&list=PL4k0fH8EgI3buZI5529R53wJUNd9NS4_s 🔹Premarket Playbook: https://www.youtube.com/playlist?list=PL4k0fH8EgI3ZVRPM7INpG--GvohnBVTnT 🔹Benzinga's All Access: https://www.youtube.com/playlist?list=PL4k0fH8EgI3bQSn91atO-3lPT4V6Nwsmh 🔹Subscribe To The Channel: https://www.youtube.com/@Benzinga ------------------------------------------------------------------------------------ ⚠️ Disclaimer: Investing in financial markets carries risk, and there are no guaranteed returns. All information is for educational purposes only and should not be taken as financial advice. Always do your own research and speak with a qualified financial advisor before making investment decisions. Only invest what you can afford to lose. Past performance does not guarantee future outcomes. #StockMarket #StockMarketNews #Trading #StockMarketLive #Stocks #stocktrading #learntotrade #DayTrading #StockMarketToday