Fox Outbid Netflix to Buy Roku, So Why Are Both Stocks Falling?

Fox Corp. (NASDAQ: FOXA) (NASDAQ: FOX) just made the biggest bet in its post-21st Century Fox history. On June 15, it announced a $22 billion cash-and-stock deal to acquire Roku (NASDAQ: ROKU) at $160 per share -- a 33.7% premium to Roku's closing price the day before reports surfaced. Roku founder Anthony Wood will join Fox's board when the transaction closes in the first half of 2027. The deal would give Fox access to more than 100 million streaming households and the advertising infrastructure that sits behind them. Strategically, it reads like a good deal.

The stock market rejected it immediately.

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Fox's stock price dropped 16.8% the day the deal was announced. By the following week, it had shed another 5.9% as investors continued to process the implications. The problem isn't the strategy -- it's the price and the capital structure required to execute it. The stock is down about 25% in the last two weeks.

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/fox-outbid-netflix-buy-roku-100500557.html)