Fox Corp shares plunged 18% to $54.02 after unveiling a $22 billion bid for Roku at $160 per share. The stock is set for its worst daily performance on record, falling below its 200-day moving average after a 25% year-to-date decline, while short interest sits at 14% of float and options volume is 48 times its norm.
The deal values Roku at $22 billion, structured as $96 in cash and 0.9693 Fox Class A shares per Roku share. Fox aims to merge its sports, news and entertainment assets with Roku’s streaming platform, which reaches more than 100 million households.
Fox Corp shares plunged 18% to $54.02, marking the steepest one-day drop on record and breaking below the 200-day moving average after a 25% decline year-to-date. Roku stock dipped 2.1% to $140.79 following the acquisition news.
Short interest stands at 14% of available float, down 5.5% over the last two reporting periods but still requiring eight trading days to cover. Options volume surged to 3,976 contracts, 48 times the daily average, led by heavy activity in June and July 55-strike calls sold to open.
Marketwatch
