Fox Corp is reportedly acquiring Roku in a deal valued at approximately $22 billion, a move that would combine Fox's content engine with Roku's 80M+ active account streaming OS. Roku's FY2025 revenue came in at $4.7B (+15.2% YoY) with 43.8% gross margins, though net margins remain thin at 1.9% — suggesting the platform is still scaling toward profitability. The deal price implies a substantial premium to Roku's recent trading range, raising immediate questions about valuation justification and integration risk for Fox.
On the Fox side, the acquisition would stretch its balance sheet considerably — Fox is a $16.3B revenue business with 14.1% net margins and $4.91 diluted EPS, and $22B is a transformational commitment. Watch for official confirmation from either company, regulatory scrutiny given Roku's market share in streaming OS, and whether Fox can fund this without dilutive equity issuance. Roku holders face classic M&A arbitrage dynamics; Fox holders face acquisition-premium overhang.