Fox closes $22B Roku buy early, puts founder on the board

Fox Corp. didn't wait until 2027. The company closed its $22 billion acquisition of Roku, a deal that was expected to take until then but instead crossed the finish line early. Fox announced the closing on Friday, framing the move as a long-term strategic play.

Roku founder and CEO Anthony Wood isn't going anywhere. He's joining Fox's board of directors and will serve as co-chair of Fox Digital Platforms, a brand-new division that houses Roku, Tubi, Fox One, Red Seat Ventures and other digital products across the company. Paul Cheesbrough also takes a co-chair seat and serves as CEO of the new unit.

Lachlan Murdoch, Fox's executive chair and CEO, pitched the deal as a long-term bet for the company. Fox also made a point of promising it will keep Roku an open ecosystem for the wider streaming industry — and Murdoch said the combined company's top priority is serving audiences and partners while reinforcing the openness and choice at the heart of the Roku platform.

Here's the money math. Fox expects roughly $400 million in annualized cost synergies within two years of closing — language that tends to precede layoffs — and says it sees potential revenue upside from combining the businesses. Fox also anticipates the deal will add to free cash flow per share by the second full year. Back in June, the companies agreed to $160 per share, split between about $14.2 billion in cash and the rest in Fox Class A common stock.

Next up: stitching Roku into Fox Digital Platforms alongside Tubi and Fox One, with Wood and Cheesbrough steering the ship. Fox's $22 billion wager now hinges on keeping the open-platform promise intact while those cost cuts land.