Fox and Roku's $1 Billion Deal and Its Potential Impact

Fox Corporation entered into a senior unsecured term loan credit agreement on June 30, 2026, securing a $1.0 billion term loan facility to help fund its pending acquisition of Roku. Morgan Stanley Senior Funding, Inc. is serving as administrative agent for the facility, which was arranged through a bank syndicate led by Morgan Stanley.

The loan carries a two-year maturity from the acquisition's closing date and will draw down only once the deal closes, with interest priced off Base Rate or Term SOFR plus a ratings-based margin. The agreement permits Fox to draw up to an additional $1.0 billion of term loans on top of the initial facility, includes customary covenants tied to Fox's operating income leverage ratio, and carries a commitment fee on undrawn amounts starting October 12, 2026. Optional prepayments are allowed without penalty, giving Fox flexibility to pay the loan down early if cash flow allows.

This $1 billion facility is one piece of a larger financing stack behind the roughly $22 billion Roku acquisition, which Fox and Roku announced as a definitive agreement on June 15, 2026 at $160.00 per Roku share in cash and Fox Class A stock. Separately, Fox has lined up $12 billion of fully committed bridge financing, also from Morgan Stanley Senior Funding, with the overall deal expected to add roughly $8.3 billion in new debt to Fox's balance sheet against an estimated $14.6 billion cash portion of the purchase price. Fox has said it expects pro forma net leverage of about 2.8 times at closing, including credit for run-rate cost synergies, and intends to maintain its investment-grade rating and uninterrupted shareholder capital returns through the process.

The term loan announcement landed alongside a ratings upgrade from Wolfe Research, which raised Fox to Outperform from Peerperform with a $71 price target, arguing the combination should roughly double Fox's long-term sales growth rate and that the stock trades cheaply, around 11.8 times next-twelve-months pro forma unlevered free cash flow, following the deal announcement. Fox reportedly outbid Netflix for Roku, underscoring how competitive the process was for control of Roku's streaming distribution platform.