Fox Corporation Completes $22 Billion Acquisition of Roku

Fox Corporation said Friday it has closed its $22 billion acquisition of streaming platform Roku, finishing well ahead of the 2027 timeline originally outlined when the deal was announced, according to Variety and a Fox Corporation press release. The combination brings together Roku's streaming hardware and software platform with Fox's existing Tubi and FOX One services, creating what Fox describes as one of the leading streaming businesses in the United States.

Roku's open distribution platform will continue serving more than 100 million households worldwide, with access to thousands of apps and channels, Fox said in its announcement.

Deal Terms and Ownership Structure

Under the terms disclosed by Fox, Roku stockholders are entitled to receive $95.30 in cash plus 0.9799 shares of FOX Class A common stock for each Roku Class A or Class B share they held immediately prior to closing. As a result, FOX stockholders now own approximately 74% of the combined company's outstanding common stock, while former Roku stockholders own approximately 26%, according to the Fox Corporation press release.

Fox separately disclosed it obtained $12.0 billion of fully committed bridge financing from Morgan Stanley Senior Funding, Inc. to help fund the cash portion of the transaction. The company expects pro forma net leverage of approximately 2.8x at closing, a figure that includes 50% credit for anticipated run-rate cost synergies, per Fox's earlier acquisition announcement.

Leadership Changes Across the Combined Company

Roku founder and CEO Anthony Wood will join the Fox board of directors and serve as Co-Chair of a newly formed division called FOX Digital Platforms, which encompasses Roku, Tubi, FOX One, Red Seat Ventures and other digital products, Fox said. He will share that role with Paul Cheesbrough, who becomes Co-Chair and CEO of the new division.

Within that structure, Roku itself will reportedly be led by CEO Mustafa Ozgen, who previously served as Roku's president of devices, products and technology, according to an internal memo from Cheesbrough obtained by Variety. The same Variety report says Charlie Collier, president of Roku Media, and Tubi CEO Anjali Sud are departing the merged company, though neither Fox's press release nor other cited sources independently confirm the departures.

Platform Strategy: Staying Open

A central theme in Fox's messaging is a pledge to preserve Roku's identity as a neutral, partner-friendly ecosystem rather than tilting the platform toward Fox-owned content. Fox Corporation's press release states that "Roku will continue to play its role as a leading open ecosystem for the broader streaming industry," and Variety's reporting elaborates that this means Fox will not automatically give exclusive or advantageous placement to Fox News or the FOX One streaming package on Roku's platform, which serves a base of more than 100 million households.

Fox Executive Chair and CEO Lachlan Murdoch framed this as the company's immediate priority. "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," Murdoch said, according to the Fox press release.

Anthony Wood echoed that sentiment in the same release, saying the deal changes Roku's "reach and resources" but not its culture. "FOX has a deep respect for Roku's culture and wholly shares our commitment to staying open to every content partner," Wood said.

Synergy Target and Financial Outlook

Fox expects to achieve approximately $400 million of run-rate cost synergies within two years of closing, with what the company describes as additional potential revenue upside, according to its press release. Fox also anticipates the transaction will be accretive to free cash flow per share by the second full year after closing.

Fox's public disclosures do not break out which specific cost categories, departments, or headcount actions underlie the $400 million target. Variety's report characterizes the synergy guidance as "suggesting layoffs are in the offing," but that framing is the outlet's own inference rather than a statement attributed to Fox. Readers should treat the layoff suggestion as analytical speculation from Variety, not a confirmed company plan.

Fox's own forward-looking-statement disclosures, included in its acquisition announcement, flag meaningful integration risk. The company specifically cites uncertainty over "FOX's ability to successfully integrate Roku's business and realize anticipated synergies and other benefits of the Roku Transaction, or do so within the anticipated time frame, or at all," along with the challenge of managing new lines of business and coordinating technologies, operations and product offerings across a larger combined company. In our reading, this language signals that Fox itself views the $400 million target and the broader integration as achievable but not guaranteed, a standard caveat in large corporate combinations rather than a specific warning sign tied to this deal.

Roku's Recent Financial Performance

Heading into the close, Roku's underlying business had been performing well. In the first nine months of 2026, Roku posted 23% revenue growth to $4.1 billion, with about 49% of that revenue coming from advertising and roughly 40% from subscriptions, according to Variety's review of the company's results. In the third quarter alone, Roku's gross profit reached $649 million, up 24% year over year, and net income came in at $183 million, more than seven times the prior-year quarter.

That growth trajectory, particularly the heavy weighting toward advertising revenue, features prominently in coverage of the deal's strategic logic. Variety reported that the Roku deal "will dramatically beef up Fox's streaming footprint" and give the company the opportunity to increase scale in the free, ad-supported streaming space through Tubi and the Roku Channel. Fox's own closing release frames the combined company as one of the leading streaming businesses in the U.S., inclusive of Roku, Tubi and FOX One.

Bottom Line

Fox has closed a deal that materially expands its direct-to-consumer footprint, combining Roku's large household base with Tubi and FOX One under a new digital platforms division co-led by Roku's founder. The company has been explicit about financial targets, including $400 million in projected synergies and free-cash-flow accretion within two years, and has publicly committed to keeping Roku's platform open rather than favoring its own content. At the same time, Fox's own risk disclosures acknowledge that integrating a business of this scale carries genuine execution risk, and the specific mechanics behind the synergy target have not been detailed publicly. How cleanly Fox balances its openness pledge with the cost and revenue goals it has set will likely become clearer in the coming quarters as the combined company reports its first results together.