Freedom: Fox Shares Plunge Triggered by $22 Billion Streaming Service Acquisition

Fox Corp. shares fell 16.8% after the announcement of the acquisition of the streaming platform Roku. Fox Corp. is an American media holding company that owns the Fox News and Fox Sports television channels, as well as the Fox Broadcasting television network. The acquired asset, Roku, develops one of the largest streaming video platforms and produces devices for accessing streaming services. Investors reacted negatively to the terms of the deal, considering it too expensive.

Under the terms of the agreement, Fox will acquire Roku for $22 billion, or $160 per share. The deal price represents a significant premium to Roku's pre-announcement market value.

The timing of the deal's completion added pressure to the stock. The acquisition is expected to be completed in the H1 2027.

The market fears that such a large-scale acquisition could increase Fox's financial burden and take time to implement potential synergies.

At the same time, the deal reflects traditional media companies' desire to strengthen their position in the digital content and streaming services market, where competition continues to intensify.

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