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Fox agrees to buy Roku in cash-and-stock deal

Fox agrees to buy Roku in cash-and-stock deal

Money Moves

A live-TV and news company moves to own the screen millions of homes turn on first

June 16th, 2026: Eight Wall Street firms downgrade Roku to Hold

Overview

Roku built the menu that pops up on roughly 90 million American TVs when they switch on. Fox agreed to buy that menu on June 15, 2026, for about $22 billion.

The deal hands Fox the home screen and a direct line to more than 100 million streaming households. Wall Street responded with doubt: Fox shares fell nearly 17%, and eight firms cut Roku to Hold within a day. The core question is whether a Fox-owned Roku can keep treating Netflix and Disney as equals.

Why it matters

The company that controls what you see first when you turn on your TV would be owned by a company that makes the shows competing for that spot.

Questions about this story

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Key Indicators

$22B
Deal value
Enterprise value Fox agreed to pay for Roku.
$160.00
Price per Roku share
$96.00 in cash plus 0.9693 Fox Class A shares.
73% / 27%
Combined ownership split
Fox holders keep 73%; Roku holders get 27%.
100M+
Streaming households
Global homes Roku reaches directly.
$400M
Targeted yearly cost savings
Run-rate synergies the companies expect from combining.
-17%
Fox stock decline
Fox Class A shares fell nearly 17% in the session following the deal announcement.

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People Involved

Organizations Involved

Timeline

May 2008 June 2026

7 events Latest: June 16th, 2026 · 4 weeks ago
Tap a bar to jump to that date
  1. Eight Wall Street firms downgrade Roku to Hold

    Latest Market

    Jefferies, Piper Sandler, JPMorgan, Evercore ISI, KeyBanc, William Blair, Loop Capital, and Citizens all cut Roku to Hold or equivalent, with most setting price targets at $160 — the deal price. Retail investors pushed Roku stock slightly higher overnight, buying against the analyst tide.

  2. Fox agrees to buy Roku for about $22 billion

    Deal

    Both boards unanimously approve the cash-and-stock agreement. Fox holders would own 73% of the combined company, Roku holders 27%.

  3. Fox shares fall about 15%

    Market

    Investors react to the price and the risk of merging a content company with a distribution platform. Fox Class A stock drops roughly 15%.

  4. Murdoch says Tubi and The Roku Channel will stay separate

    Statement

    Fox has no plans to merge its two free ad-supported streaming services. Tubi focuses on on-demand content; The Roku Channel centers on free linear channels, and Murdoch said the two serve different audiences.

  5. Roku reaches roughly 90 million households

    Background

    Roku ends 2024 with about 89.8 million streaming households, more than half of U.S. broadband homes.

  6. Roku goes public

    Background

    Roku lists on the Nasdaq and begins shifting its business from selling hardware to selling ads and platform services.

  7. Roku ships its first streaming box

    Background

    A project that began with Netflix backing becomes a standalone $99 device for watching internet video on a TV.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

January 2000

AOL buys Time Warner (2000)

Internet provider AOL agreed to merge with media giant Time Warner in a deal valued near $165 billion, joining distribution with content. The logic was that owning the pipe and the programming would pay off together.

Then

The dot-com crash and a culture clash gutted the combined company's value within two years.

Now

Time Warner wrote off tens of billions and eventually split the businesses back apart. The deal became shorthand for distribution-plus-content mergers that fail.

Why this matters now

Media analyst Doug Creutz cited this history in urging skepticism about Fox owning both the shows and the screen they play on.

June 2018

AT&T acquires Time Warner (2018)

Phone and pay-TV company AT&T bought Time Warner for about $85 billion. The Department of Justice sued to block it, arguing the combined firm could harm rivals that needed Time Warner's content. A judge let it proceed.

Then

AT&T won in court and closed the deal, rebranding the unit WarnerMedia.

Now

The promised benefits never materialized. AT&T spun the media business off in 2022, unwinding the merger at a steep loss.

Why this matters now

It shows both how a vertical media deal can survive an antitrust challenge and how it can still fail commercially afterward.

March 2019

Disney buys 21st Century Fox (2019)

Disney paid about $71 billion for most of 21st Century Fox's entertainment assets. The Murdochs kept the live news, sports, and broadcast pieces and spun them into the Fox Corporation that exists today.

Then

Disney used the assets to launch Disney+ and bulk up its content library.

Now

Fox became a leaner company built around live programming, with no streaming platform of its own.

Why this matters now

The Roku purchase is Fox fixing the gap that 2019 split left: it has the live content but, until now, no platform to distribute it directly.

Sources

(15)