Fox Stock Drops 14% Following $22 Billion Roku Buyout

Investors reacted sharply to the announcement, pushing the stock down to $56.48. This decline exacerbates a difficult year for the company, which had already seen its market value contract by 11% through the end of last week. Under the proposed terms, Fox will pay $160 per share in a mix of cash and Class A common stock, leaving Fox shareholders with approximately 73% of the newly combined entity.

Management expects the acquisition to propel the company to the third-largest position in the U.S. television market by viewer share. Boards at both firms have signed off on the arrangement, which secures a permanent role for Roku CEO Anthony Wood, who will join the Fox board upon closure. Fox Corp. shares common ownership with News Corp, the parent company of The Wall Street Journal.