On June 15, Fox Corporation Class A shares fell 13.45% in regular trading, trading at $53.355/share, with turnover of $527 million. The sharp decline was triggered by the company's formal announcement of a definitive agreement to acquire streaming platform Roku in a cash-plus-stock transaction.

Under the terms of the deal, Fox will acquire Roku at $160 per share, representing an 11.4% premium over Roku's prior closing price, valuing the company at approximately $22 billion. Upon completion, Fox's existing shareholders will hold roughly 73% of the combined entity, while Roku shareholders will retain about 27%. Fox has secured a $12 billion fully committed bridge loan from Morgan Stanley to fund the cash portion of the transaction, with closing expected in the first half of next year.

The strategic rationale centers on gaining direct access to Roku's over 100 million streaming households, enhancing targeted advertising capabilities, and reducing reliance on traditional cable distribution. Fox's CFO indicated that approximately 30% of pro forma revenue would come from the Tubi and Roku digital platforms. Analysts noted the deal could position the combined Tubi-Roku platform as a leader in the free, ad-supported streaming market, though the significant debt burden and integration risks weighed heavily on investor sentiment.

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