But shares of Fox sank more than 15% following the news, a drop analysts said reflected concerns about the deal\u2019s dilutive impact on existing equity as well as strategic questions about the deal.<\/p>\n
Roku shareholders would receive cash and Fox stock under the deal valued at US$160 per share, a joint press release said, with the transaction expected to close in the first half of 2027.<\/p>\n
Roku shares have traded between about US$90 and US$130 since late April.<\/p>\n
Operating system <\/p>\n
California-based Roku rose to prominence in the early days of streaming with its plug-in devices and is now a major player in smart TV operating systems, earning the vast majority of its revenue from advertising and other platform-related services.<\/p>\n
It also has its own advertising-supported streaming channel, a competitor to Fox\u2019s Tubi.<\/p>\n
Roku generated US$4.7 billion in revenue in 2025, with approximately US$88m in profit.<\/p>\n
Murdoch \u2013 who was handed control of his father Rupert Murdoch\u2019s media empire in 2023 \u2013 told analysts on a conference call that the current expectation is to keep Tubi and Roku as separate platforms.<\/p>\n
While there is about a one-third overlap in the audience of Roku and Tubi, \u201cthey serve consumers and their viewers in different ways\u201d, Murdoch said.<\/p>\n
Streaming media analyst Dan Rayburn said the Roku infrastructure will bring Fox valuable intelligence on a large portion of viewers in terms of what people are watching, how they are watching and \u201cwhat are they wanting to pay for?\u201d he said.<\/p>\n
Beyond that, Fox will also benefit from Roku\u2019s distribution system. Rayburn noted that Fox has not disclosed viewership figures at Fox One, suggesting limited reach thus far.<\/p>\n
Emarketer analyst Ross Benes also saw logic in the deal.<\/p>\n
\u201cIt remains to be seen how well the combination of a digitally innovating streaming company will mesh with a media conglomerate rooted in legacy assets,\u201d Benes said. \u201cBut the strategy makes sense and it jibes with the continual consolidation that\u2019s occurring in streaming.\u201d<\/p>\n
A note from Briefing.com alluded to Roku\u2019s 100 million subscribers as a selling point, but said the weakness in Fox shares shows \u201cinvestors are also focused on dilution, leverage, integration risk, and whether Fox can preserve Roku\u2019s partner-friendly neutrality while owning a gatekeeper platform\u201d.<\/p>\n
Shares of Fox slumped 15.1% while Roku dipped 0.9%.<\/p>\n
– AFP<\/p>\n","protected":false},"excerpt":{"rendered":"But shares of Fox sank more than 15% following the news, a drop analysts said reflected concerns about…\n","protected":false},"author":2,"featured_media":479405,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[241223,62148,696,8613,138,6932,8556,45435,3468,4131,13313,305,78,241222,111,139,69,3545,4410,50001,781,3291,61,241224,1533,19985],"class_list":["post-479404","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-377b","tag-acquire","tag-announced","tag-billion","tag-business","tag-cash","tag-companies","tag-corporation","tag-deal","tag-fox","tag-giant","tag-have","tag-in","tag-murdochs","tag-new-zealand","tag-newzealand","tag-nz","tag-platform","tag-provider","tag-roku","tag-stock","tag-streaming","tag-to","tag-us22","tag-will","tag-worth"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/479404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=479404"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/479404\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/479405"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=479404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=479404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=479404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}