FOX CORPORATION COMPLETES ACQUISITION OF ROKU

Former Roku stockholders own approximately 26% of FOX's outstanding common shares, while FOX stockholders own approximately 74%.

Rhea-AI Summary

Fox Corporation (Nasdaq: FOXA, FOX) completed its acquisition of Roku, bringing the streaming platform into its media and technology business. Roku holders are entitled to $95.30 in cash and 0.9799 FOX Class A shares for each Roku Class A or Class B share owned immediately before closing. Roku shares will cease trading on Nasdaq on November 6, 2026.

FOX expects approximately $400 million in run-rate cost synergies, or ongoing cost savings, within two years after closing, potential additional revenue upside, and higher free cash flow per share by the second full year after closing. Roku will remain an open distribution platform. Anthony Wood will join FOX's board and serve as Co-Chair of the newly formed FOX Digital Platforms division alongside Paul Cheesbrough, its Co-Chair and CEO. The division includes Roku, Tubi, FOX One and Red Seat Ventures.

4 points · 1 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointRoku acquisition completed, adding its streaming platform to FOX's business.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Approximately $400 million in ongoing cost savings expected within two years after closing.
• Minor point. Forward-looking: it has not happened yet and may not happen.Free cash flow per share expected to increase from the transaction by the second full year after closing.
• Minor point. Forward-looking: it has not happened yet and may not happen.Additional revenue upside identified by FOX as a potential benefit of the combination.

Negative

• Major point$95.30 cash and 0.9799 FOX Class A shares payable per Roku share add cash consideration and dilution.
• Minor pointFormer Roku holders own approximately 26% of FOX; FOX stockholders retain approximately 74%.

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+0.18% vs previous close $60.10 last price 3.0x rel. volume Open Argus

Details

Market Reaction – FOX

$57.50 – $65.17 Day Range

$25.35B Mkt Cap at Last Price

On Nov 6, the day this news came out, the latest delayed price for FOX is 0.18% above the previous close. The latest delayed price is $60.10. Relative volume is very high at 3.0x what this stock usually trades by this time of day.

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Key Figures

Cash consideration per Roku share: $95.30 FOX shares per Roku share: 0.9799 shares Run-rate cost synergies: $400 million +2 more

Cash consideration per Roku share

$95.30

Cash component of the completed acquisition consideration

FOX shares per Roku share

0.9799 shares

Stock component of the completed acquisition consideration

Run-rate cost synergies

$400 million

Expected within two years following transaction close

Combined-company ownership

FOX stockholders: approximately 74%; former Roku stockholders: approximately 26%

Ownership of outstanding FOX common stock after the transaction

Free cash flow per share accretion

By the second full year after closing

Company expectation

Previous Acquisition Reports

1 past event · Latest: Jun 15

Same Type 1 event

1. Jun 15

   Acquisition agreement

   24h Move

   -15.2%

   Initial agreement set $96 cash plus 0.9693 FOX shares; completion reports revised consideration.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

run-rate, free cash flow per share, merger agreement

3 terms

run-rate financial

"approximately $400 million of run-rate cost synergies within two years"

Run-rate is an estimate of a company’s future annual performance created by multiplying recent results (such as a month or quarter) to project a full year, like using current speed to guess how far you’ll travel in a year. Investors use it as a quick way to gauge growth, size and momentum and to compare firms, but it can be misleading if recent results include one-time events or seasonal swings, so it’s a rough, not definitive, forecast.

free cash flow per share financial

"accretive to free cash flow per share by the second full year"

Free cash flow per share measures how much cash a company generates from its business after paying for running costs and investments, divided by the number of shares outstanding. It tells investors how much real, spendable cash each share represents — like dividing a household’s leftover monthly cash among family members — and helps assess a company’s ability to pay dividends, buy back stock, or reinvest for growth.

merger agreement financial

"Under the terms of the merger agreement"

A merger agreement is a binding contract that lays out the exact terms for two companies to combine, including the price, what each side will deliver, and the conditions that must be met before the deal is completed. Investors care because it sets the timetable, payouts and risks — like a blueprint or prenup that shows whether the deal is likely to close, how ownership will change, and what could cancel or alter the payout they expect.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FOX Is Now One of the Leading Streaming Businesses in the U.S., Inclusive of Roku, Tubi and FOX One

Roku's Open Distribution Platform to Continue Serving More Than 100 Million Households Worldwide, with Access to Thousands of Apps and Channels Across the Streaming TV Ecosystem

NEW YORK, Nov. 6, 2026 /PRNewswire/ -- Fox Corporation (Nasdaq: FOXA, FOX) ("FOX" or the "Company") today announced the successful completion of its acquisition of Roku, Inc. (Nasdaq: ROKU) ("Roku").

With this acquisition FOX has entered a new transformational era – creating an innovative scaled media and technology company with superior reach, engagement and monetization capabilities. The combination of FOX's premium live sports, news and local programming with Roku's open connected TV platform reaching across more than 100 million households creates new opportunities for the Company to serve its viewers, advertisers and partners.

This transaction accelerates FOX's digital strategy and expands FOX's business mix towards high-growth streaming and connected TV verticals, strengthening our long-term growth profile. The Company expects to achieve approximately $400 million of run-rate cost synergies within two years following the transaction close, with additional potential revenue upside, and anticipates that the transaction will be accretive to free cash flow per share by the second full year after closing.

Importantly, from an operating standpoint, Roku will continue to play its role as a leading open ecosystem for the broader streaming industry. A key element of Roku's ubiquity is the choice it offers viewers and the value it provides to content partners. Together, FOX and Roku will preserve and build on these strengths.

Lachlan K. Murdoch, Executive Chair and Chief Executive Officer of Fox Corporation, said:

"The closing of this acquisition advances the long-term strategy of FOX. Beginning today, our top priority for the combined company is to continue to relentlessly serve audiences and partners, while reinforcing the openness and choice that is the essence of the Roku platform. Our shared entrepreneurial passion and clear conviction toward building the future together with our new Roku colleagues gives us great confidence in the opportunities ahead of us."

Roku founder Anthony Wood will join the FOX board of directors. He will also serve as Co-Chair, FOX Digital Platforms, the newly formed division that includes Roku, Tubi, FOX One, Red Seat Ventures, and other digital products and services across the Company, alongside Paul Cheesbrough, who assumes the role of Co-Chair and CEO, FOX Digital Platforms.

Anthony Wood added:

"We started Roku more than two decades ago to give people a better way to watch TV, and that mission doesn't change today. What does change is our reach and resources. FOX has a deep respect for Roku's culture and wholly shares our commitment to staying open to every content partner. Our teams will keep building and innovating as they always have, now with the support and capabilities of FOX behind us. I'm proud of what Roku's employees have built, and I'm excited about what comes next."

Transaction Details

Under the terms of the merger agreement, Roku stockholders are entitled to receive $95.30 in cash and 0.9799 shares of FOX Class A common stock for each share of Roku Class A and Roku Class B common stock they owned immediately prior to closing. As a result of the transaction, FOX stockholders own approximately 74% of the outstanding shares of FOX common stock and former Roku stockholders own approximately 26%. 

With the acquisition complete, Roku shares will cease trading on the Nasdaq as of today. 

About Fox Corporation

Fox Corporation is a media and technology company that produces and distributes news, sports and entertainment content across broadcast, streaming and digital platforms. Its portfolio includes FOX News Media, FOX Sports, FOX Entertainment, FOX Television Stations and FOX Digital Platforms, which includes Roku, Tubi, FOX One, Red Seat Ventures and other digital businesses. FOX's portfolio brings together iconic brands, compelling content and platforms that reach audiences and create new opportunities for viewers, partners and advertisers. For more information, please visit www.foxcorporation.com.

Advisors

Allen & Company LLC served as lead financial advisor to FOX. Morgan Stanley & Co. LLC also served as a financial advisor to FOX, and Morgan Stanley Senior Funding, Inc. led the debt financing for the transaction. Goldman Sachs & Co. LLC also served as a financial advisor to FOX. Weil, Gotshal & Manges LLP served as legal counsel to FOX.

Qatalyst Partners served as exclusive financial advisor to Roku, and Goodwin Procter LLP and Axinn LLP served as legal counsel to Roku.

Cautionary Notes on Forward-Looking Statements

This communication includes "forward-looking statements" within the meaning of federal securities laws, including Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") by the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated synergies and other benefits of the completed transaction between FOX and Roku (the "Roku Transaction"). In this context, forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "target," "endeavor," "seek," "predict," "intend," "strategy," "plan," "may," "could," "should," "will," "would," "will be," "will continue," "will likely result," or the negative thereof or variations thereon or similar terminology generally intended to identify forward-looking statements. All statements, other than historical facts, including, but not limited to, statements regarding the anticipated synergies and other expected benefits of the Roku Transaction, including future financial and operating results and strategic benefits, the tax consequences of the Roku Transaction, and the combined company's plans, objectives, expectations and intentions, legal, economic and regulatory conditions, and any assumptions underlying any of the foregoing, are forward-looking statements.

These forward-looking statements are based on FOX's and Roku's current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from FOX's and Roku's current expectations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) FOX's ability to successfully integrate Roku's business and realize anticipated synergies and other benefits of the Roku Transaction, or do so within the anticipated time frame, or at all; (2) FOX's ability to manage and operate new lines of business that it did not engage in previously; (3) management's ability to design and implement operational, managerial, financial and strategic initiatives that address integration and the increased scale and scope of the combined business with its associated increased costs and complexity; (4) the diversion of management's attention and resources from ongoing business concerns and performance shortfalls, which may disrupt to some degree FOX's ongoing business; (5) integrating the companies' operations and corporate functions, technologies, networks and customer service platforms, and integrating and unifying the product offerings and services available to customers; (6) creating, implementing and executing a unified business strategy and operational, financial and managerial control with respect to the combined company; (7) maintaining employee morale and attracting, motivating and retaining management personnel and other key employees; (8) maintaining existing relationships and agreements with affiliates, advertisers, content partners, distributors, device partners, retailers, suppliers, vendors, customers, subscribers and other counterparties (collectively, the "counterparties"); addressing any counterparty's non-performance of its obligations under such agreements; and avoiding delays in entering into new agreements with prospective other counterparties and attracting new business and operational relationships; (9) the possibility of faulty assumptions underlying expectations regarding the integration process; (10) addressing possible differences in business backgrounds, corporate cultures and management philosophies; (11) coordinating programming and marketing efforts; (12) coordinating geographically dispersed organizations; (13) integrating information, purchasing, provisioning, accounting, finance, sales, billing, payroll, reporting and regulatory compliance systems; (14) consolidating corporate and administrative infrastructures and eliminating duplicative operations and inconsistencies in standards, controls, procedures, and policies; (15) addressing the Company's significant combined indebtedness and associated obligations and/or restrictions and risks related to the combined company's ability to deleverage the business in accordance with management's targets; (16) managing a significantly larger company than before the consummation of the Roku Transaction; (17) exposure to increased litigation from stockholders, counterparties or other third parties due to the combination of the FOX and Roku businesses following the Roku Transaction; and (18) other risk factors detailed from time to time in FOX's and Roku's reports filed with the Securities and Exchange Commission (the "SEC"), including FOX's and Roku's annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC, including documents that will be filed with the SEC in connection with the Roku Transaction. The foregoing list of important factors is not exclusive.

Any forward-looking statements speak only as of the date of this communication. FOX does not undertake, and expressly disclaims, any obligation to update any forward-looking statements, whether as a result of new information or developments, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

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SOURCE Fox Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What do Roku shareholders receive in FOX's completed acquisition?

Roku stockholders are entitled to $95.30 in cash and 0.9799 shares of FOX Class A common stock for each Roku Class A or Class B share they owned immediately before closing. Roku shares will cease trading on Nasdaq on November 6, 2026.

What cost savings does FOX expect from the Roku acquisition?

FOX expects approximately $400 million in run-rate cost synergies, meaning ongoing cost savings, within two years after closing. It also anticipates that the transaction will increase free cash flow per share by the second full year after closing, with additional potential revenue upside.