Why Are Roku Investors No Longer Getting $160 a Share in a Bad Buyout?

Fox's $160-per-share acquisition of Roku is now worth substantially less after Fox stock dropped 22% in the first three trading days following the announcement. The $22 billion enterprise value deal—structured as $96 cash plus 0.9693 Fox shares per Roku share—has seen its stock component erode from $64 to approximately $49 by Wednesday.

Roku shares traded at $137.29 as of the article, reflecting a 6% discount to the degraded deal value. The all-stock-and-cash structure exposes Roku shareholders to Fox's equity volatility, turning what founder Anthony Wood committed to into a materially worse outcome within 72 hours.

The probability of a competing bid remains minimal. Wood controls 55% of Roku's voting power and has publicly committed to the Fox transaction, effectively blocking alternative offers regardless of shareholder sentiment about the declining consideration.