Fox Corporation announced on Friday that it has completed its acquisition of Roku, closing a transaction valued at about 22 billion dollars when it was agreed in June, well ahead of the first half of 2027 closing timetable the companies originally expected. Roku shares will cease trading on the Nasdaq as of today.
Under the terms of the merger agreement, Roku stockholders receive 95.30 dollars in cash and 0.9799 shares of Fox Class A common stock for each Roku Class A or Class B share they held immediately before closing. Fox stockholders own about 74 percent of the combined company’s outstanding shares and former Roku stockholders about 26 percent.
Fox said it expects about 400 million dollars of run rate cost synergies within two years of closing, with additional potential revenue upside, and expects the deal to be accretive to free cash flow per share by the second full year after closing. The company said Roku’s platform reaches more than 100 million households and will remain an open ecosystem for the wider streaming industry.
Roku founder Anthony Wood joins the Fox board of directors and will serve as co-chair of Fox Digital Platforms, a new division that includes Roku, Tubi, Fox One and Red Seat Ventures, alongside Paul Cheesbrough, who becomes co-chair and chief executive of the division. TheWrap reported that the closing followed shareholder approval in October and clearance from the Department of Justice, which had issued a second request for information during its review, and that Tubi and Roku together accounted for 4.8 percent of streaming viewership in August, tying Disney’s share and trailing only Netflix and YouTube on Nielsen figures.
The Department of Justice said later on Friday that its Antitrust Division has closed its investigation into the merger, concluding the transaction is not likely to harm competition. The division said entry by other free, ad-supported streaming providers would be timely, likely and sufficient to offset the risk, and that Roku’s reliance on content from many providers would make it costly for Fox to disadvantage rivals on the platform. Fox committed that Roku will remain an open and neutral content partner, including carrying non-Fox content for at least three years on historical terms, no discrimination against non-Fox content in search results, continued data products for third parties on commercially reasonable terms, and existing firewall commitments on content partners’ competitively sensitive data for at least three years.