Key Highlights

  • Roku shares jumped roughly 20% after Fox Corporation agreed to acquire the company for $160.00 per share.
  • The deal values Roku at approximately $22 billion and is expected to close in the first half of 2027.
  • Needham raised its price target on Roku to $170, while Citizens lifted its target to $175.
  • Baird downgraded Roku to Neutral, citing limited near-term upside above the deal price.

Roku Inc (NASDAQ:ROKU) shares closed up approximately 20% at $143.66 on Friday, gaining a further 1.7% in pre-market trading to around $146, after Fox Corporation confirmed it would acquire the company in a deal that unites Roku's connected TV platform with FOX's live sports, news, and Tubi streaming content.

Under the terms of the agreement, Roku shareholders will receive $96.00 in cash and 0.9693 shares of FOX Class A common stock for each share held, a combination valued at $160.00 per share at announcement. The transaction was unanimously approved by both companies' boards and is expected to close in the first half of 2027, pending regulatory review.

The deal represents a significant premium to Roku's pre-announcement trading levels and reflects the value FOX placed on Roku's platform, which reaches more than 100 million households globally and commands a substantial share of the US connected TV market.

Analyst reaction to the announcement has been mixed. Needham raised its price target on Roku stock to $170, while Citizens lifted its target to $175, both reflecting the deal premium and potential upside tied to the combined company's prospects. At the same time, Baird downgraded Roku to Neutral, pointing to limited near-term upside for the stock above the agreed deal price.

Ahead of the announcement, Roku had a market capitalization of approximately $21.22 billion, with a price-to-earnings ratio of 106.41 and earnings per share of $1.35. The stock's 52-week range stood at $77.64 to $148.88, with Friday's close pushing shares close to the upper end of that range. Trading volume surged to 15.03 million shares as investors reacted to the news.

For Roku shareholders, the transaction provides both an immediate cash component and continued exposure to the combined company through FOX stock, with Roku Founder and CEO Anthony Wood expected to retain an ongoing role and join FOX's board following completion of the deal.