Shares of Fox Corporation Class A (FOXA.US) tumbled more than 16% on Monday, moving close to their annual low and currently trading at $54.85. This decline occurred against the broader market trend.

The sell-off follows news that Fox Corporation has entered into a definitive agreement to acquire the leading streaming platform, Roku Inc (ROKU.US), in a cash-and-stock transaction. According to a joint statement released Monday, the deal values Roku at an enterprise value of approximately $22 billion, with an offer price of $160 per share. This represents an 11.4% premium over Roku's closing price last Friday.

The transaction is anticipated to close in the first half of 2027. Upon completion, existing Fox shareholders are expected to own roughly 73% of the combined company, with Roku shareholders holding approximately 27%. To support the acquisition, Morgan Stanley Senior Funding has provided Fox with a fully committed $12 billion bridge financing facility.