NEW YORK, August 14, 2026, 11:22 EDT — U.S. cash markets opened.
- Fox Class A shares gained approximately 5%, while the S&P 500 was little changed.
- On Friday, J.P. Morgan and Wells Fargo raised their ratings on the stock.
- Roku’s implied offer value rose to roughly $162.60 per share after Fox’s rally.
Shares of Fox Corporation NASDAQ:FOXA rose 5.0% to $68.71 as of 11:09 a.m. EDT on Friday after J.P. Morgan and Wells Fargo both issued upgrades. In contrast, the S&P 500 was off 0.1% in recent trade.
The surge impacts not just Fox’s independent worth, but also boosts the present value of Fox’s ongoing cash-and-stock proposal for Roku NASDAQ:ROKU to around $162.60 per share. Roku shares were at $157.07, resulting in a spread of about 3.5%.
The spread now serves as a concise gauge of closing risk. It also indicates the changing value of Fox shares, which make up 40% of the main offer.
| Market snapshot | Price or level | Day change |
|---|---|---|
| Fox Class A NASDAQ:FOXA | $68.71 | up 4.98% |
| Roku NASDAQ:ROKU | $157.07 | rises 1.94% |
| Walt Disney NYSE:DIS | $106.74 | adds 1.87% |
| Netflix NASDAQ:NFLX | $77.96 | down 0.36% |
| S&P 500 | 7,790.82 | falls 0.10% |
| Nasdaq Composite | 26,703.81 | slips 0.37% |
J.P. Morgan’s David Karnovsky raised his recommendation on Fox to buy and assigned a price target of $82. Steven Cahall of Wells Fargo also upgraded the stock to buy, putting its target at $80. Deutsche Bank analyst Bryan Kraft kept his buy rating in place, maintaining the $80 price target.
| Analyst | Firm | Friday action | Target | Upside/downside |
|---|---|---|---|---|
| David Karnovsky | J.P. Morgan | Raised to Buy | $82 | +19.3% |
| Steven Cahall | Wells Fargo | Raised to Buy | $80 | +16.4% |
| Bryan Kraft | Deutsche Bank | Maintained Buy | $80 | +16.4% |
| Jessica Reif Ehrlich | Bank of America | Maintained Sell | $54 | -21.4% |
Fox received upgrades eight days following its report of a significant quarterly outperformance. Revenue climbed 28% to $4.21 billion, while adjusted EBITDA was up 27% at $1.20 billion. Gains were attributed to World Cup advertising and increased Tubi activity.
Fox posted “record top-line revenue which converted into record EBITDA,” Chief Executive Lachlan Murdoch said. The company increased its semiannual dividend to 29 cents a share. Fox earnings release
| Fox fiscal Q4 metric | 2026 | 2025 | Change |
|---|---|---|---|
| Revenue | $4.212 billion | $3.287 billion | +28% |
| Advertising revenue | $1.916 billion | $1.078 billion | +78% |
| Adjusted EBITDA | $1.195 billion | $939 million | +27% |
| Adjusted EPS | $1.79 | $1.27 | +41% |
| Television segment EBITDA | $705 million | $308 million | +129% |
In June, Fox consented to purchase each Roku share for $96 in cash plus 0.9693 Fox Class A shares. The initial headline value of $160 was calculated with a Fox reference price of $66.03. Fox shares are currently trading higher than that benchmark.
| Roku deal terms | At reference on announcement | At Fox’s price Friday |
|---|---|---|
| Fox Class A share price | $66.03 | $68.71 |
| Stock portion, 0.9693 shares | $64.00 | $66.60 |
| Cash portion | $96.00 | $96.00 |
| Aggregate implied offer | $160.00 | $162.60 |
| Premium over Roku at $157.07 | 1.9% | 3.5% |
Fox’s proposed $22 billion deal would provide it entry to Roku’s platform, reaching over 100 million homes. The company targets $400 million in annualized cost reductions and anticipates the transaction will increase free cash flow in the second full year post-close.
Funding is still a key issue. As of June 30, Fox reported cash holdings of $4.21 billion and total debt at $6.61 billion. A subsequent filing disclosed that a $1 billion committed term loan will support the acquisition.
Risks: The transaction remains subject to approval from shareholders and regulators. Fox anticipates completion in the first half of 2027. Increased debt, potential integration expenses or a downturn in advertising may reduce the expected cost savings.
The rally on Friday lessens Fox’s immediate market punishment. The longer-term debate remains unresolved. The main question is if streaming expansion can outpace both leverage and challenges from linear TV.
Related articles: NASDAQ:ROKU
