Fox’s planned $22 billion acquisition of Roku moved forward on Monday after the company confirmed during its earnings call that all required international regulatory approvals had been secured. The approvals relate to the deal announced in June and remove one of the major outstanding conditions outside the United States.
Shareholders of both companies approved the transaction in mid-October. Under the merger terms, Roku investors will receive $96 in cash and 0.9693 shares of Fox Class A common stock for each Roku share. Once the deal closes, Fox shareholders are expected to own approximately 73% of the combined company, with Roku shareholders holding about 27%. Roku founder and CEO Anthony Wood is expected to remain involved and join Fox’s board.
The acquisition is intended to support Fox’s expansion in digital distribution and advertising. Roku reaches more than 100 million streaming households worldwide and is available in more than half of U.S. broadband homes. Fox expects the combination of Roku with its free ad-supported streaming service, Tubi, to strengthen its position in connected-TV advertising.
The companies have projected approximately $400 million in annual cost synergies, in addition to potential revenue gains from improved ad targeting and cross-promotion. Fox has also arranged financing for the cash component through new debt, existing resources and committed bridge facilities, while saying it expects to maintain an investment-grade credit profile.
The transaction still requires approval from U.S. authorities. In early September, the Department of Justice issued a second request under the Hart-Scott-Rodino Act, extending the review period until 30 days after both companies substantially comply with the additional information request. Fox and Roku have continued cooperating with the agency and expect to complete the acquisition in the first half of 2027, subject to final U.S. regulatory approval and other customary closing conditions.
Sources: Cord Cutters News.