Fox Corp is set to acquire Roku in a $22 billion cash-and-stock transaction, according to Investing.com. Roku generated $4.7B in revenue (+15.2% YoY) in FY2025 with 43.8% gross margins but a thin 1.9% net margin and just $0.59 diluted EPS, meaning Fox is paying a steep multiple for a platform that remains barely profitable at scale. For Fox, with $16.3B in revenue and 14.1% net margins, absorbing Roku would be a transformational bet on connected TV distribution.

The key second-order setup is the M&A arbitrage spread: Roku shares will likely gap toward but likely not fully to the deal price given deal risk, regulatory scrutiny (DOJ/FTC posture on media consolidation), and the mixed-currency structure. Watch for any confirmation from official filings, Fox board details, and whether activist or competing bidders emerge — this is unconfirmed as of now.