BUZZ-Fox shares slump after $22 bln deal for streaming platform Roku

Roku, Inc. Class A
Fox Corporation Class A

Roku, Inc. Class A

ROKU

0.00

Fox Corporation Class A

FOXA

0.00

** Shares of Fox Corp FOXA.O slump 13.4% to $57 premarket

** Media giant signs $22 bln deal for streaming platform Roku ROKU.O

** ROKU shares rise 2.8% to $147.62; ROKU stock closed ~20% higher on Friday after Bloomberg News reported sale talks

** FOXA to acquire ROKU for $160 per share, representing a premium of 11.4% to Roku's last close, in a cash-and-stock deal

** Deal will combine Fox's portfolio of sports, news and entertainment content with Roku's TV streaming platform

** Combined company to become the third-largest player in U.S. television by viewership share, companies say

** Deal, expected to close in H1 2027, to boost Fox's digital strategy and achieve about $400 mln in run-rate cost savings

** Fox says it expects to fund cash portion of the deal with a combination of new debt and cash on hand; company has obtained $12 bln of bridge financing from Morgan Stanley Senior Funding

** Through last close, ROKU up ~32% YTD, while FOXA down ~10%


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