Why Fox Stock Is Tumbling After $22 Billion Roku Deal

Fox Corp. (FOX) stock dropped Monday after the company announced it will acquire streaming platform Roku (ROKU) for $160 per share in a mixed stock-and-cash deal valued at roughly $22 billion in enterprise value.

The acquisition price represents a significant premium for Roku shareholders, while Fox investors are selling off on concerns about the deal's size and integration risks. The $22 billion enterprise value ranks as one of the largest media technology acquisitions in recent years.

Fox is buying Roku's streaming technology platform, which powers millions of connected TVs and streaming devices. The deal will give Fox direct access to Roku's advertising technology and user base as traditional media companies race to compete in streaming against Netflix, Amazon, and Google.

The transaction combines Fox's content library and live sports programming with Roku's distribution platform and ad-targeting capabilities. Fox will fund the purchase through a combination of stock issuance and cash, though the exact split was not disclosed in the initial announcement.