Fox Corp. Announced on Monday an agreement to acquire streaming device maker Roku in a cash-and-stock transaction valued at approximately $22 billion. The deal, which has been approved by the boards of directors of both companies, is expected to close in the first half of 2027. Under the terms of the agreement, Fox will pay $96 in cash and approximately 0.97 Fox Class A shares for each Roku share, valuing the offer at $160 per share. Fox plans to fund the cash portion of the transaction using a combination of cash on hand and new debt, including a $12 billion loan from Morgan Stanley. The acquisition combines Fox’s news and sports channels, along with its free ad-supported streamer Tubi, with Roku’s streaming devices and The Roku Channel. Fox stated it expects the deal to generate approximately $400 million in run-rate cost synergies and additional revenue upside. Following the closing, existing Fox shareholders are expected to own roughly 73% of the combined company, while Roku shareholders will own about 27%. The combined entity is projected to become the third-largest player in U.S. Television by viewership share. Fox CEO Lachlan Murdoch described the deal as a “defining moment” that pairs Fox’s live content portfolio with a preeminent streaming platform. Murdoch noted that Fox has reoriented since 2019 to center on live news and sports while driving advertising revenue. Roku CEO Anthony Wood stated the platform reaches more than 100 million streaming households globally and reaches 145 billion hours of engagement annually. Wood will join the Fox board of directors after the transaction closes, and the companies stated Roku will continue to be run as an open, partner-friendly platform with no immediate changes for customers. Market reactions varied following the announcement. Fox stock fell between 14% and 15% in morning trading on Monday, while Roku stock saw slight gains of between 0.5% and 1% in premarket or morning trading. The deal follows reports from the previous Friday that Roku was exploring strategic options, including a potential sale.