Fox sinks following $22 billion Roku deal as streaming stocks get sold off
Fox Corporation stock skidded after the company said it will buy Roku. Fox execs called it a streaming deal, but investors dumped the stock. Fox Class A slid 16.8% and finished at $54.76, losing $11.09. Class B lost 15.2% and closed at $49.96. Fox lost billions in market cap with a buyout that’s about as big as the company itself. Fox is putting up $96 in cash and 0.9693 Fox Class A shares per Roku share, valuing the deal at $160 a share. Roku’s enterprise value, counting debt and equity, comes in around $22 billion. Fox plans to merge its Tubi, sports, news, and entertainment businesses with Roku’s connected-TV assets, including The Roku Channel and data operations. The move would push Fox's streaming footprint to over 100 million homes, according to the company. “A defining moment for FOX,” CEO Lachlan Murdoch said. Fox is targeting a close in the first half of 2027, with the deal subject to shareholder and regulatory sign-off.