Bank of America Securities analyst Jessica Reif Ehrlich maintained her sell rating on Fox and raised her price target to $54 after Fox agreed to buy Roku for roughly $22 billion. Fox shares fell about 17% on the day the deal was announced and slid further the next session, hitting a fresh 52-week low. The acquisition, Fox's largest since selling most of its entertainment assets to Disney in 2019, will pay $160 per Roku share split between $96 in cash and 0.9693 of Fox Class A shares, with Fox lining up a $12 billion loan to fund the cash portion. Ehrlich noted the deal will not close until the first half of 2027, the roughly $400 million in promised cost savings will take years to materialize, and a costly future NFL rights renewal could pressure profits, leaving no near-term catalysts. Fox has shed more than a quarter of its value so far in 2026 and trades at a price-to-earnings ratio near 13.
Fox Corp Class AFox's acquisition of Roku is a large capital outlay with no near-term catalysts, sending stock to 52-week low.
Roku IncRoku is being acquired by Fox at a premium; deal values Roku at $160 per share.
Walt Disney Company