Fox Corp Class A

Roku, Inc. announced on June 15th that it will be acquired by Fox Corp, with each Roku share receiving $96 in cash and 0.9693 shares of FOXA. RGA Investment Advisors, which first bought Roku in late 2018, disclosed the deal in its second-quarter 2026 investor letter, noting it is likely to hold the FOXA shares upon closing due to enthusiasm around Roku's growth acceleration and revenue synergies. Roku closed at $158.18 per share on August 24, 2026, with a market capitalization of $23.48 billion, a one-month return of 9.92%, and a 65.53% gain over the past 52 weeks.

Fox reported second-quarter results that beat analyst expectations, with revenue of $4.21 billion versus estimates of $3.65 billion, a 28.1% year-on-year increase. Adjusted EPS came in at $1.79 compared to the $1.38 consensus, and adjusted EBITDA was $1.20 billion against a $1.00 billion forecast. CEO Lachlan Murdoch credited robust advertising demand across live sports, news, and the Tubi streaming platform, as well as the FIFA Men's World Cup broadcast and the launch of FOX One. During the earnings call, analysts questioned management about ad market strength, World Cup-driven gains, Tubi's revenue drivers, FOX One subscriber retention, and political ad expectations, with Murdoch projecting a record midterm ad cycle and CFO Steve Tomsic confirming ongoing share repurchases.

Fox Corp. was upgraded to Overweight from Neutral by J.P. Morgan and Wells Fargo, which also raised their price targets, citing stronger earnings prospects, robust advertising trends and the pending acquisition of Roku. J.P. Morgan raised its price target to $82 from $70, while Wells Fargo lifted its target to $80 from $65. J.P. Morgan raised its fiscal 2027 and 2028 adjusted EBITDA estimates by 7% and 9%, respectively, following the company's fourth-quarter results. The brokerage cited strong FIFA World Cup economics, an upbeat political advertising outlook, continued advertising momentum and better distribution revenue. The outlook was supported by strong performance in Fox's television business and Tubi. J.P. Morgan said fourth-quarter television revenue rose 45% year over year to $2.48 billion, while segment EBITDA jumped 129% to $705 million. Tubi revenue increased 35%, helped by a 17% rise in viewing time, with the platform ending fiscal 2026 with 110 million monthly active users. J.P. Morgan expects another boost from the 2026 FIFA World Cup and a record political advertising cycle. It raised its fiscal 2027 television EBITDA estimate by 30% to $1.49 billion and said Fox's decision not to renegotiate its existing NFL media rights deal early removes a major near-term overhang. Wells Fargo also raised its fiscal 2027 EBITDA estimate to $4.12 billion from $3.85 billion and expects World Cup revenue of about $800 million, compared with its previous estimate of more than $600 million. It raised its fiscal 2027 television segment EBITDA estimate to $1.6 billion from $1.3 billion, citing stronger political advertising, World Cup revenue and digital investments. The planned Roku acquisition is another key part of the bullish outlook. J.P. Morgan said combining Tubi with Roku's streaming platform would create the largest free ad-supported streaming television operator and improve Fox's growth profile. The brokerage also sees significant potential for Fox to leverage its advertising expertise across Roku's more than 100 million streaming households. Wells Fargo estimates the deal could generate about $300 million in advertising revenue synergies within roughly two years, driven by higher pricing and fill rates on Roku Channel inventory, homescreen advertising and improved monetization of third-party streaming inventory. J.P. Morgan said Fox's pro forma valuation remains below the level implied by its $82 price target, leaving room for a rerating as investors increasingly view the combined company as a scaled connected-TV platform with first-party data and greater advertising opportunities.

Roku has launched Fairground AI, the first all-AI free streaming channel on a major platform, testing whether near-zero-cost programming can sustain an ad-supported audience at scale. The channel, built on AI-generated films, shorts, and ads, comes from startup Fairground and runs continuously with no fixed schedule. Roku's stock is now trading near the $160-per-share takeover price offered by Fox in a deal valuing the company at roughly $22 billion, with analysts at Seaport Research and Guggenheim downgrading the stock to Neutral. Roku's second-quarter revenue rose 22% year over year to $1.35 billion, platform revenue climbed 25% to $1.22 billion, and net income hit a record $164.2 million. The Fairground launch signals a potential structural shift in streaming, where AI-generated content and ads could threaten studios like Netflix and Disney while benefiting ad-supported platforms.

Fox Corporation declared a semi-annual dividend of $0.29 per share, a 3.6% increase from the prior dividend of $0.28. The dividend is payable on September 23 to shareholders of record as of September 2, with an ex-dividend date of September 2. The forward yield is 0.94%.

Fox Corporation reported record fiscal 2026 financial results with annual revenue reaching $17.1 billion, a 5% increase driven by record advertising and distribution revenue, while adjusted EBITDA rose 8% to $3.9 billion. Fourth-quarter revenue surged 28% to $4.2 billion, fueled by the broadcast of the 2026 FIFA Men's World Cup, which helped push quarterly advertising revenue up 78% to $1.9 billion. Tubi, the company's free ad-supported streaming service, grew fourth-quarter revenue by 35% and reached 110 million monthly active users, while the newly launched FOX One streaming service saw minimal cannibalization of the traditional pay-TV business and churn rates below expectations. The company also announced a semiannual dividend increase to $0.29 per share and repurchased $2 billion in shares during the fiscal year, with management indicating the buyback program will continue through the pending acquisition of Roku, which is expected to close in the first half of calendar 2027 at a net leverage of 2.8 times.

Vertical short series lasting two to three minutes, born in China, are becoming the world's fastest-growing entertainment business, generating over 11 billion dollars in revenue in 2025 and projected to rise to 26 billion dollars by 2030, according to Media Partners Asia. More than 200 micro-drama apps were available overseas by February 2025, up nearly fourfold from the previous year, with the main audience being women aged 18 to 35, and average global viewing time rising 85 percent to 25 minutes per day. The United States accounts for 37 percent of the global market's in-app purchase revenue, despite having only a 3 percent share of downloads, while Hollywood studios and platforms such as Peacock, TikTok, and Fox are all entering this market. Artificial intelligence is cutting production costs by over 90 percent, with Kunlun Tech reducing costs from 200,000 dollars to under 20,000 dollars per title, and ReelShort expects that by 2027 over 90 percent of content will be produced with AI.

Roku announced it will release its second quarter 2026 financial results after market close on Thursday, August 6. In light of the pending acquisition by Fox Corporation, Roku will not host an earnings call and will not provide a financial outlook. The definitive agreement for Fox to acquire Roku was announced on June 15.

The streaming-content industry is moving beyond pure subscription models toward advertising, live sports, and creator-led video, benefiting Alphabet, Amazon, and Fox. Streaming captured a record 47.5% of U.S. television use in December 2025 and 46.6% of ad-supported TV viewing in the first quarter of 2026, according to Nielsen. Alphabet's YouTube held 13.4% of total U.S. television watch time in April 2026, the largest share among measured media distributors, while Amazon's Prime Video represented 4.2% and Fox's Tubi reached a platform-best 2.3%. Fox also announced a planned acquisition of Roku in June 2026, projecting roughly $400 million in annualized cost synergies, though the deal requires approvals and is expected to close in the first half of 2027.

Ademi LLP is investigating Roku for possible breaches of fiduciary duty in its recently announced transaction with Fox. Roku stockholders will receive a cash-and-stock deal valued at $160.00 per share, with Fox paying $96.00 in cash and 0.9693 shares of Fox Class A common stock for each Roku Class A and Class B share. Upon closing, existing Fox shareholders are expected to own approximately 73% of the combined company and Roku shareholders approximately 27%. The investigation focuses on whether the Roku board is fulfilling its fiduciary duties, noting that insiders will receive substantial benefits as part of change of control arrangements and that the transaction agreement imposes a significant penalty if Roku accepts a competing bid.

Wolfe Research upgraded Fox Corp. to Outperform from Peer Perform with a $71 price target, arguing the planned merger with Roku will double Fox's long-term sales growth rate. Analyst Peter Supino said the combined entity would create a connected TV and streaming unit accounting for roughly 45% of pro forma TV engagement and about one-third of pro forma revenue. Fox shares have fallen 23% from pre-merger levels and trade at 11.8 times next-twelve-month pro forma unlevered free cash flow, a discount Wolfe expects to narrow as selling abates and new shareholders assess the outlook. The $71 target is based on 13 times estimated pro forma 2028 unlevered free cash flow of $3.6 billion.

The Zacks Broadcast Radio and Television industry faces mounting cord-cutting and macroeconomic pressures, but Netflix, Fox, Roku, and Sirius XM are positioned to benefit from surging digital content demand. The industry carries a Zacks Industry Rank of 164, placing it in the bottom 34% of over 250 Zacks industries, with aggregate 2026 earnings estimates down 6.3% since June 30, 2025. Fox, a Zacks Rank #1 (Strong Buy), saw its fiscal 2026 consensus earnings estimate rise 7.6% to $4.93 per share over the past 60 days, supported by a new NFL package in Mexico and a planned acquisition of Roku targeting roughly $400 million in run-rate cost synergies. Netflix, a Zacks Rank #3 (Hold), guided for 2026 revenues of $50.7 billion to $51.7 billion and operating margin expansion to 31.5%, with its ad-supported tier reaching over 250 million global monthly active viewers and ad revenues on track to roughly double to about $3 billion. Roku, also a Zacks Rank #3, surpassed 100 million global streaming households and raised full-year guidance to platform revenue growth near 21% to $5 billion, while its merger agreement with Fox adds a near-term catalyst. Sirius XM, another Zacks Rank #3, reaffirmed full-year guidance of roughly $8.5 billion in revenues and $2.6 billion in adjusted EBITDA, with free cash flow tripling year over year in the first quarter and churn falling to a record-low 1.5%.

Jim Cramer expressed strong support for Fox News’ announced $22 billion acquisition of Roku, calling himself a big believer in the deal. Roku shares surged 20% on June 12th when news of the acquisition broke, contributing to a 70.5% gain over the past year and a 27% rise year-to-date. The company reported $1.13 billion in revenue on May 1st and raised its full-year outlook, while Guggenheim raised its price target to $130 from $115 with a Buy rating on April 21st, citing strategic evolution and user growth. Cramer referenced a conference call exchange between analyst Richard Greenfield and Roku CEO Anthony Wood, dismissing any implication of trouble at the company.

Significant mergers and acquisitions are reshaping Hollywood in the first half of 2026, according to Tom Ara, head of Weil, Gotshal & Manges Entertainment, Sport & Media practice. Key deals include Fox's $22 billion investment in Roku and Paramount's $110 billion acquisition of Warner Brothers Discovery. Ara notes the market has shifted from a cautious stance last year to a more confident environment, driving increased capital deployment and ongoing consolidation in the entertainment sector. He spoke with Romaine Bostick and Katie Greifeld on "The Close."

Fox has agreed to acquire Roku in a cash-and-stock deal valuing Roku at $160 per share, or $22 billion based on Fox's 10-day volume-weighted average share price as of June 10, with closing expected in the first half of 2027. The combined entity will reach 100 million households through Roku's smart-TV platform, giving Fox a massive distribution edge and potentially reducing visibility for Disney's content on a platform that was previously neutral. Fox will also strengthen its free ad-supported streaming position by owning both Tubi and The Roku Channel, which could force Disney to share more advertising economics for better placement of its ad-based Disney+ and Hulu tiers. Despite the increased competition, Disney's wide economic moat rests on its unique intellectual property—characters, stories, and franchises that cannot be replicated—which should help it maintain momentum.

Seeking Alpha analysts Max Greve and Chris DeMuth Jr. identified Lionsgate and AMC Global Media as potential takeover targets following Fox's agreement to acquire Roku at an enterprise value of around $22 billion. Greve categorized media deals into small, large, and large with parks, noting that Lionsgate and AMC Global Media could supplement existing content libraries for players like Comcast, Paramount, or Disney, while Starz might attract a new entrant with capital. DeMuth Jr. specifically pointed to Lionsgate as the next likely target, citing more demand than supply for its assets even though Netflix has disavowed interest. He also expects the Warner Bros. and Paramount deal to close but warned of a winner's curse from competitive bidding.

Netflix stock is down 17% year to date and slipped again on June 16 after reports linked the company to a failed bid for Roku, which Fox has now agreed to acquire in a $22 billion deal. Earlier this year, Netflix walked away from Warner Bros. after Paramount Skydance made a better offer. Management has emphasized that acquiring quality assets is a luxury, not a necessity, and the decision not to engage in bidding wars reflects disciplined capital allocation. Netflix is set to spend $20 billion this year on content production and still sees room to grow, with only 45% of its addressable market captured and revenue up 16% year over year in the first quarter. The stock trades at 21 times 2026 earnings estimates.

Netflix remains one of the best falling stocks to invest in, according to analysts, even after failing to acquire Roku and Warner Bros. On June 16, Netflix stock declined amid reports that the streaming giant had aggressively pursued Roku but lost a bidding war to Fox, which offered $160 per share in a cash-and-stock deal. This marks the second setback for Netflix, which had also failed in its pursuit of Warner Bros. The failed bids highlight Netflix's shift toward pursuing growth through mergers and acquisitions, particularly to gain access to first-party ad data and strengthen its advertising prospects, rather than relying solely on organic growth. Netflix operates a global streaming service with over 310 million paid memberships across thousands of internet-connected devices.

A bullish thesis on Flutter Entertainment plc argues the global online sports betting and iGaming company is undervalued relative to its long-term earnings potential. The thesis highlights FanDuel as a central asset worth a substantial portion of Flutter's enterprise value, supported by FOX's option to acquire an 18% stake at a predetermined valuation through 2030. Flutter holds leading market positions in the United States, United Kingdom, Italy, and Australia through brands including FanDuel, Betfair, Paddy Power, and PokerStars. The company is expected to benefit from U.S. market maturation, reduced promotional intensity, potential iGaming legalization in additional states, and a $5 billion share buyback program. Under conservative and consensus assumptions, the thesis projects equity value appreciation of approximately 130% to 240% by 2030, with more optimistic scenarios supporting share prices between $400 and $650.

PR Newswire released its weekly roundup of notable press releases for June 15-19, 2026, featuring 13 stories spanning media, education, retail, aviation, technology, food, healthcare, consumer goods, pharmaceuticals, defense, lifestyle, and transportation. Fox Corporation announced a deal to acquire Roku for $160.00 per share in a cash-and-stock transaction valuing Roku at approximately $22 billion in enterprise value. U.S. News unveiled its 2026-2027 Best Global Universities Rankings, while Urban Outfitters debuted its second annual Pride vinyl collection with 12 limited-edition releases from artists including Reneé Rapp and Kesha. United Airlines introduced a custom “Stars and Stripes” livery on Boeing 787-10 and 737-800 aircraft and marked a military pilot hiring milestone. SandboxAQ signed a definitive agreement with the U.S. Department of Commerce for a $500 million CHIPS R&D award to develop novel molecules and formulations for semiconductor manufacturing. McDonald’s announced the limited-time return of its Fried Apple Pie starting June 23. LifeNet Health, NASA, and UNOS completed a first-of-its-kind drone kidney transport study with preliminary findings showing no negative effects on the organs. Crayola introduced an ‘All Grown Up’ adult coloring line with alcohol-based markers, acrylic paint markers, and artist-designed coloring books. Lilly acquired 4E Therapeutics to advance a non-opioid approach to chronic pain. Lockheed Martin and GM Defense are collaborating to strengthen the U.S. manufacturing and defense industrial base. Wildlife conservationist Robert Irwin became the new face of The Lad Collective bedding brand. Southwest Airlines partnered with Amazon Web Services to accelerate AI capabilities and transition to a cloud-based architecture by 2028. Life360 and Uber partnered to help parents coordinate rides for teens.

Simply Wall St raised its modeled fair value for Fox Corp. to US$73.94 from US$73.88, a marginal increase that leaves the price target essentially unchanged. The adjustment reflects a projected net profit margin shift to 12.05% from 11.62%, a future P/E assumption moving to 14.64x from 15.20x, and a discount rate easing to 7.34% from 7.42%, while long-term revenue growth is held at about 4.05%. The update comes amid a mix of analyst actions: bullish calls from Evercore ISI, Deutsche Bank, JPMorgan, Wells Fargo, and BofA raised targets, with Benchmark highlighting Fox's planned Roku acquisition as opening longer-term possibilities, while Barclays cut its target to US$60 and Seaport Research to US$61, citing integration risks and an estimated US$8 billion incremental debt burden from the roughly US$22 billion deal. Fox also reported share repurchases of 6,270,780 shares for US$99.98 million in early 2026, bringing total buybacks since November 2019 to 221,116,159 shares for US$8,533.03 million, or 42.71% of the company.

Netflix shares fell 4% on Tuesday, extending a two-month decline of 27%, after the company reportedly lost a bidding war for streaming platform Roku to Fox. The setback follows Netflix's earlier failure to acquire Warner Bros. Discovery, losing to David Ellison's Paramount. Year to date, the stock is down 16% compared to a 10% gain for the S&P 500, and it is now trading below its 50-day, 100-day, and 200-day moving averages. Investors are also concerned about slowing growth and the recent departure of longtime chairman Reed Hastings. Netflix reports second quarter earnings on July 16, with analysts looking for improved guidance after the company disappointed in April by not raising its full-year 2026 revenue outlook and posting an operating margin forecast below expectations.

Wells Fargo analyst Steven Cahall believes a higher bid for Roku is unlikely, leaving Fox positioned to acquire the streaming platform. Cahall noted that Roku founder and CEO Anthony Wood said the board ran a full strategic review, but investors feel the announcement was rushed and bulls think Roku is worth more. While Comcast, Disney, or Netflix could pay a bigger premium, Cahall said it is unclear they want to deviate from their core strategies with a major transaction, and he views a counterbid as improbable. That would mean Roku shareholders exit at $96 per share plus some Fox stock. Roku shares rose 0.5% in premarket trading to $138.70, with short interest at 6.0% of the total float.

Fox Corp. announced on Monday, June 15, that it intends to purchase streaming technology company Roku for $22 billion in stock and cash. Roku’s hardware holds a 36% connected-TV market share in North America and the Western Hemisphere, and its platform business accounted for 90% of its $1.25 billion first-quarter revenue. The deal positions Fox to control a major content distribution gateway as cable TV continues to decline, with streaming now accounting for more U.S. viewing time than cable and broadcast combined. Fox’s ad-supported service Tubi and Roku’s own free channel are the two largest ad-supported streaming venues in the U.S., and Fox’s sports arm, including its Super Bowl LIX coverage, offers cross-promotion opportunities. While the Department of Justice may scrutinize the merger, the pairing is seen as a cost-effective win-win that could revive bundled content partnerships like the abandoned Venu sports streaming plan.