Fox Corporation said on Friday it has completed its acquisition of Roku, and that Roku stockholders are entitled to receive $95.30 in cash and 0.9799 shares of Fox Class A common stock for each Roku share, according to Fox’s release. Fox said Roku shares cease trading on the Nasdaq as of today. TechCrunch described it as a $22 billion acquisition.
At Fox Class A’s official Nasdaq close of $67.67 on 5 November, that package is worth about $161.61 per Roku share, and about $24.1 billion across the 149.1 million Roku shares outstanding on 26 October, by our arithmetic. Fox said its stockholders now own about 74% of Fox and former Roku stockholders about 26%.
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The key insight: As we read it, Fox closed its Roku purchase on 6 November at $95.30 in cash plus 0.9799 Fox Class A shares per Roku share, a package worth about $161.61 at Fox’s 5 November close, or about $24.1 billion in total, by our arithmetic.
Roku’s 10-Q says it uses AI technologies “to power our content recommendation engine and our content row on the Roku Home Screen to provide more personalized recommendations” and “to improve measurement and performance in Roku Ads Manager”. Fox said it expects Roku’s reach to help it improve advertising targeting, according to TechCrunch’s account; Fox’s release says the deal expands its mix toward “high-growth streaming and connected TV verticals”.
Roku Platform revenue for the quarter to 30 September: $1,064.6 million in 2025 and $1,308.3 million in 2026, from Roku’s Form 10-Q. The 22.9% change is our arithmetic.
The Terms and the People
Roku’s 10-Q described the June merger terms as $96.00 in cash plus 0.9693 of a Fox Class A share, with the exchange ratio to rise and the cash to fall if needed to account for dissenting shares, so that stock makes up 40% of the aggregate value. The completion release states $95.30 and 0.9799. On our figures, stock is about 41% of the package at Thursday’s Fox close.
Fox said it expects about $400 million of run-rate cost synergies within two years and that the deal will be accretive to free cash flow per share by the second full year after closing. Roku founder Anthony Wood joins the Fox board and becomes Co-Chair of FOX Digital Platforms, a new division that includes Roku, Tubi and FOX One, alongside Paul Cheesbrough, who becomes Co-Chair and CEO. Fox said Morgan Stanley Senior Funding led the debt financing.
TechCrunch reported that the closing came two months after the Justice Department issued a second request for information, and earlier than the first half of 2027 the companies projected in June. Roku’s 10-Q says either company could owe the other a $866.1 million termination fee in specified circumstances, and Fox could owe Roku $1.2 billion in some regulatory scenarios.
As we read the release and the 10-Q, Fox is buying a growing ad business: Roku’s Platform revenue rose about 22.9% to $1,308.3 million in the quarter to 30 September, by our arithmetic from the 10-Q.
As we read the terms, the per-share mix moved from the 10-Q’s $96.00 and 0.9693 to the release’s $95.30 and 0.9799; on our figures, stock is about 41% of the value at Thursday’s Fox close, against the 40% the 10-Q describes.
As we read the release, Fox is keeping Roku open to other content partners and pairing it with Tubi and FOX One in a new FOX Digital Platforms division.
Anthony Wood, Roku founder, in Fox’s release
“We started Roku more than two decades ago to give people a better way to watch TV, and that mission doesn’t change today”
Three Implications
FOR ADVERTISERS Fox said the combined company reaches more than 100 million households through Roku’s platform.
FOR ROKU STOCKHOLDERS Fox said former Roku stockholders own about 26% of Fox and that Roku shares cease trading on the Nasdaq today.
FOR FOX’S FINANCES Fox said it expects about $400 million of run-rate cost synergies within two years and that Morgan Stanley Senior Funding led the debt financing.
The analysis says: “The transformer is a commodity now; what changes between paradigms is where intelligence accumulates and who can capture it.”
As we read it, Roku’s 10-Q describes its AI as recommendations on the Home Screen and measurement in Roku Ads Manager, and that viewing and ad data now sits inside Fox. The analysis does not discuss this deal.
What Is Not Established
Fox’s release does not state a total deal value, the number of Fox shares issued or the cash paid in aggregate, and it does not say why the per-share terms differ from those in Roku’s 10-Q. Our $24.1 billion uses shares outstanding on 26 October and excludes equity awards; the annualised Platform revenue multiple uses one quarter times four. We did not contact Fox or Roku.
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Fox said it completed its Roku acquisition on 6 November, paying $95.30 in cash and 0.9799 Fox Class A shares per Roku share, worth about $161.61 at Thursday’s close, by our arithmetic. Roku shares stop trading today, and Anthony Wood joins Fox’s board.
A note on sourcing. The completion, per-share terms, ownership split, synergy target and leadership are from Fox’s release of 6 November 2026; revenue, the June terms, AI uses and termination fees are from Roku’s Form 10-Q; the $22 billion figure and regulatory timeline are TechCrunch’s; the Fox close is Nasdaq’s official close. The per-share value, total value, stock share, growth rates and multiples are our arithmetic. We did not contact Fox or Roku.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
