Fox Shares Plunge 15% After $22B Roku Acquisition Financed by $12B Loan
FOXA•Fox’s stock plunged over 15% following its agreement to acquire Roku in a $22 billion deal financed by a $12 billion bridge loan and additional debt. The acquisition could more than double Fox’s leverage and shifts its strategy from content ownership to control of the streaming home screen.
1. Acquisition Details
Fox agreed to acquire Roku in a $22 billion transaction, leading to a stock sell-off of over 15%, marking its worst single-day drop as investors reacted to the deal’s scale and implications.
2. Financing and Leverage Impact
The cash component of the transaction will be covered by a $12 billion bridge loan, existing cash reserves, and additional debt, which could more than double the company’s leverage once fully deployed.
3. Strategic Shift to Distribution Control
Fox highlights that streaming’s share of US TV viewing rose from 25% in 2020 to 48% in 2026, underlining the strategic importance of controlling Roku’s home screen to influence viewer engagement and advertising reach.
