Fox Shares Sink 15% After $22 Billion Roku Deal at $160 a Share
Updated
Updated · CNBC · Jun 15
Fox Shares Sink 15% After $22 Billion Roku Deal at $160 a Share
3 articles · Updated · CNBC · Jun 15
Summary
Fox stock fell 15% in midday trading after the company unveiled its cash-and-stock acquisition of Roku, while Roku shares were down slightly.
The offer values Roku at $160 per share, an 11% premium to Friday's close, and Fox said the combination would create a stronger sports, news and streaming platform.
The market drop extends an earlier selloff after Wall Street questioned Fox's rationale for buying Roku and the future of Roku's platform-neutral business model.
The $22 billion deal is Fox's push to build scale in streaming, an area where it has lagged larger media rivals pursuing consolidation.