Fox Corp Details Roku Acquisition's Financial Impact: Pro Forma EPS Plummets to $1.05
FOXA sits 31% above its 52-week low of $48.34.
Summary
Fox Corp filed an amended 8-K detailing the pro forma financial impact of its $23.2 billion Roku acquisition, showing a substantial decrease in pro forma diluted EPS to $1.05 from $3.84.
Key Events · M&A and Partnerships · FOXA
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Pro Forma Financials Released for Roku Acquisition
This amendment provides the historical financial statements of Roku and the unaudited pro forma condensed combined financial information for the $23.2 billion acquisition, which were previously omitted from the initial 8-K filing on June 15, 2026.
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Significant EPS Dilution Revealed
The pro forma diluted earnings per share for the combined entity for the year ended June 30, 2026, is projected at $1.05, a substantial decrease from Fox Corp's historical diluted EPS of $3.84.
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Increased Share Count Post-Acquisition
The pro forma diluted weighted-average common shares outstanding are projected to increase to 590.4 million from Fox Corp's historical 439.2 million, reflecting the stock component of the merger consideration.
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Acquisition Financing Confirmed
The filing details the financing structure, including a $1 billion Term Loan Facility and plans for permanent financing to cover the $14.6 billion cash portion of the merger consideration, reducing reliance on a $8.8 billion bridge facility.
Analysis · FOXA · Technology
This 8-K/A provides the critical pro forma financial statements for the $23.2 billion Roku acquisition, which were previously omitted. It reveals a significant negative impact on Fox Corp's earnings per share, with pro forma diluted EPS dropping from $3.84 to $1.05. This quantification of the financial consequences is highly material for investors assessing the deal's immediate value and dilution.
At the time of this filing, FOXA was trading at $63.50 on NASDAQ in the Technology sector, with a market capitalization of approximately $25.3B. The 52-week trading range was $48.34 to $76.39. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.