Fox Confirms $22B Roku Acquisition; Netflix App to Be Removed from Platform
ROKU sits 78% above its 52-week low of $77.64 on elevated volume (4.6× avg).
Summary
Fox Corporation is acquiring Roku for $22 billion, including debt, with shareholders receiving $96 cash and 0.9693 Fox Class A shares per ROKU share, backed by a $12 billion bridge loan from Morgan Stanley. This follows multiple SEC filings on June 15th confirming the acquisition. A significant consequence of the deal is the removal of Roku as a distribution partner for the Netflix app on smart TVs, which is a material operational change for Roku's platform business. Analysts have reacted to the acquisition news with several rating downgrades, though some price targets align with the acquisition value.
At the time of this announcement, ROKU was trading at $138.20 on NASDAQ in the Technology sector, with a market capitalization of approximately $20.4B. The 52-week trading range was $77.64 to $148.88. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Wiseek News.