Fox Advances Roku Acquisition Amid Shareholder Litigation Concerns

Fox plans to acquire Roku for $22B, keeping Tubi and The Roku Channel separate but merging ad sales. Fox cites distinct user habits for keeping services apart. Deal completion is subject to regulatory and shareholder approvals, expected this year. Viewers and advertisers will see minimal changes post-acquisition.

Roku (ROKU) issued supplemental disclosures for its Fox (FOX) acquisition, addressing stockholder concerns about merger disclosures, including revised financial projections and bonus caps. The company maintains original disclosures were compliant. Analysts have a Hold rating with a $155 price target, while TipRanks' AI Analyst rates it Outperform, citing strong financials and the Fox deal, but notes high valuation and neutral technical signals.

Roku updated its merger proxy disclosures with Fox, projecting $2.43B cash and -$630M net debt by June 30, 2026. Qatalyst revised DCF assumptions, with standalone UFCF discount rates at 12.5%-18.0% and combined company rates at 9.0%-13.0%. Transaction bonuses are capped at $13M, excluding the CEO.

ROKU, INC (ROKU) filed an SEC Form 8-K — Other Events. Item 8.01 Other Events. As previously announced, on June 14, 2026, Roku, Inc., a Delaware corporation (the “Company” or “Roku”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Fox Corporation, a Delaware corporation (“FOX” or “Parent”), Falcon Merger S

Fox Corp. (FOXA) agreed to acquire Roku in a two-step merger, with stockholder meetings set for Oct 14, 2026. A lawsuit alleges disclosure omissions. Fox hired Morgan Stanley for $30M, including $5M paid and $25M contingent. The registration statement is effective Sept 1, 2026.

Fox Corp (FOX) disclosed $30M in advisory fees to Morgan Stanley for its merger with Roku, including $5M paid upon agreement and $25M contingent on completion. Additional financing fees are estimated at $43M to $50M. Stockholder votes are scheduled for October 14, 2026.