Fox buys Roku in $22B deal

Kim Khan· Host0:00

[instrumental music] Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis. Good afternoon. Today is Monday, June 15th, and I'm your host, Kim Kahn. Our top story so far, Fox is making a major push to expand its streaming footprint, agreeing to acquire Roku in a cash and stock deal valued at about twenty-two billion dollars. The combination brings together Fox's sports, news, and entertainment assets, including Tubi, with Roku's more than one hundred million streaming households worldwide. The company said Roku will continue to operate as an open partner-friendly platform. Fox will pay ninety-six dollars in cash plus zero point nine six nine three share of Fox Class A stock for each Roku share. That works out to about a hundred and sixty bucks per share. Following the announcement, Fox shareholders are expected to own about seventy-three percent of the combined company, with Roku investors owning the remaining twenty-seven percent. Shares of Roku surged twenty percent on Friday after reports that a deal was imminent and are easing back a little today. Fox shares are down ten percent. Among active stocks, SpaceX is extending gains from its debut after Elon Musk predicted the company could generate a trillion dollars in annual revenue by twenty thirty. The stock surged twenty percent on its first day of trading Friday. Technical analysts said investors should watch the one hundred and fifty dollar level, with a break below potentially opening the door to a pullback towards the one thirty-five IPO price. TripAdvisor is rallying more than ten percent after agreeing to sell its European