By Janet H. Cho

Fox Corp stock continued to fall a second day after the broadcaster announced an agreement to buy streaming technology maker Roku on Monday.

Fox Class A shares were down 5.6% at $51.69, and Fox Class B shares were down 5.1% at $47.42 just after 11 a.m. Eastern time. The Class A stock's drop put it on pace for its lowest close since May 9, 2025, when it closed at $50.24, according to Dow Jones Market Data.

Roku shares were down 1.5% at $138.80.

Fox said it was buying Roku for $22 billion in a stock and cash deal that would create the largest player in U.S. television by share of viewing.

Fox will pay $96 in cash and exchange 0.9693 of a share of Fox class A common stock for each Roku class A and Class B share. The stock consideration is valued at $64 a Roku share, based on the 10-day volume-weighted average price of Fox's shares as of June 10, last Wednesday.

"FOX and Roku are committed to continuing to operate Roku as an open, partner-friendly platform and to the continued ubiquitous distribution of FOX content," the companies said on Monday.

Fox is paying a hefty premium for Roku -- 34% to where the stock was trading before news of the deal. That implies taking on debt, as well as a change in business profile, analysts said.

Roku makes streaming devices and licenses its operating system to TV makers, which allows them to offer platforms like Apple TV, Netflix, and Comcast's Peacock. The company receives advertising revenue and gets a cut of subscription fees for channels and streaming services that are bought through its platform.

"Roku exposes Fox in a significant way to the low-margin OEM [original equipment manufacturing] business, which has many different dynamics when compared to the current version of Fox," wrote analysts at Madison Wall, an advisory and consulting firm, on Monday.

"Roku's revenues are by now majority advertising-dependent, but its costs primarily relate to manufacturing and related software development as well as physical marketing and distribution of its devices," they added.

Roku shares had already gained 20% on Friday after initial reports that the company was in sale talks. Shareholders could also be disappointed by not receiving an all-cash offer.

Fox and Barron's parent News Corp share common ownership.

Write to Janet H. Cho at janet.cho@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

June 16, 2026 11:45 ET (15:45 GMT)

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