Roku investors are seeing the value of the Fox buyout fall sharply because the deal is partly in stock. Fox is paying $96 per share in cash plus 0.9693 shares of Fox Class A common stock, and the initial $160 per share figure was based on a Fox reference price of $66.03 that is now obsolete. By Wednesday's close, Fox shares had fallen 22% since the announcement, pushing the deal value down to $145.75 per share, while Roku stock traded at $137.29. Founder and CEO Anthony Wood, who controls roughly 55% of Roku's voting power, supports the deal and has accepted a role at Fox, making a rival bid unlikely. The transaction is expected to close in the first half of next year.
Fox Corp Class AFox shares fell 22% since the Roku buyout announcement, reducing the deal's stock component value.
Roku IncThe buyout value per Roku share dropped from $160 to $145.75 due to Fox's stock decline, and Roku stock trades below that at $137.29.