Fox CorporationNasdaq: FOXA
Communication Services · Broadcasting
$51.78
+0.90%
Vol: 4.6M
Research Digest
Thursday, June 18, 2026
Fox shares stay under pressure after announcing $22 billion cash-and-stock acquisition of Roku, with analysts cutting targets on leverage concerns.
On June 15, 2026, Fox Corporation announced a definitive agreement to acquire streaming platform Roku for $160.00 per share, an enterprise value of about $22 billion, with Roku holders receiving $96 in cash plus 0.9693 FOX Class A shares; the deal is expected to close in the first half of calendar 2027. The combination pairs Fox's live news, sports and entertainment assets (NFL, MLB, Fox News, Tubi, Fox One) with the top US connected-TV platform by hours streamed, accelerating Fox's push into CTV advertising, and Lachlan Murdoch called it a defining moment. FOXA fell after the announcement as investors flagged elevated leverage and integration risk, and Seaport Research cut its price target to $61 from $72. The story is still moving the stock two-to-three days out. The key risk is execution and financing on a transformational, debt-heavy deal that will not close until 2027.
Previous Market Intelligence
13 daysJun 17Fox shares plunged to a 52-week low after announcing a $22 billion acquisition of Roku, raising dilution and debt concerns.Negative▶
On June 15, 2026, Fox Corporation announced a definitive agreement to acquire Roku for $160.00 per share in cash and Fox Class A stock, valuing Roku at roughly $22 billion in enterprise value, a deal expected to close in the first half of 2027. The transaction pairs Fox's sports, news, entertainment content and Tubi with Roku's connected-TV platform, The Roku Channel, first-party data and more than 100 million global streaming households. Investors reacted sharply negatively: FOXA fell over 16% on June 15 and dropped roughly another 18% to around $54 on June 16, hitting a 52-week low in what was tracked as one of its worst days on record. Concerns center on the 34% premium paid for Roku, significant shareholder dilution from the stock component, and roughly $8.3 billion in added debt. The strategic upside is direct access to Roku's user base, CTV operating system and ad data. The key risk is whether streaming synergies justify the price and integration burden.
Jun 16Fox Corp shares fell roughly 12-17% after announcing a $22 billion deal to acquire connected-TV platform Roku, raising questions over price and strategic logic.Negative▶
Fox Corporation announced an agreement to acquire Roku in a deal valued at about $22 billion, priced at $160 per Roku share (roughly $96 in cash with the remainder in Fox stock). The transaction combines Fox's sports, news and entertainment content plus its Tubi streaming service with Roku's connected-TV operating system, The Roku Channel, first-party data and direct relationships with more than 100 million global streaming households. CEO Lachlan Murdoch called the acquisition a 'defining moment' for the company. FOXA Class A shares dropped sharply (reported between roughly 12% and 17%) as investors questioned both the high price and the strategic fit. The bear case centers on Roku's value being built on neutrality as a distribution platform, which could be undermined once it is owned by a content competitor, potentially straining relationships with partners like YouTube, Netflix and Comcast. Management is reportedly targeting $400 million in synergies, but integration risk and dilution from the stock portion are key concerns.
Jun 15Fox Corporation announced a definitive agreement to acquire streaming platform Roku for about $22 billion, its largest deal in a decade and a major bet on connected TV.Mixed▶
On June 15, 2026, Fox Corporation and Roku announced a definitive merger agreement under which FOX will acquire Roku for $160.00 per share, valuing Roku at roughly $22 billion in enterprise value. The consideration is $96.00 in cash plus 0.9693 shares of FOX Class A common stock per Roku share, leaving existing FOX shareholders with about 73% of the combined company and Roku holders about 27%. The deal unites FOX's premium live sports, news and entertainment content and its Tubi service with Roku's connected-TV platform, The Roku Channel and first-party data reaching more than 100 million global streaming households. Both boards unanimously approved the transaction, which is expected to close in the first half of 2027. The combination marks Fox's biggest strategic move in nearly a decade as it pivots aggressively toward streaming distribution. The bear case is significant integration and execution risk, regulatory review of a large cross-sector media-tech tie-up, dilution from the large stock component, and the heavy capital commitment at a time when the connected-TV advertising market remains competitive.
Jun 14No significant overnight updatesNeutral▶
No material news in the last 48 hours.
May 21Fox Corp surged 7.6% after Q3 fiscal 2026 earnings beat with revenue of $4B and adjusted EPS of $1.32Positive▶
Fox Corp Class A shares surged 7.59% to close at $67.72 on May 12, 2026 following the release of fiscal Q3 results that significantly exceeded analyst expectations. Total Revenue of $4B with adjusted EBITDA up 11% to over $950M marked a record fiscal third quarter. Adjusted EPS of $1.32 beat consensus of $0.97. Tubi streaming saw US monthly users up 28% to 97M with 50% ad revenue growth. Cable network affiliate fees rose 5%. Multiple analysts raised price targets: Evercore ISI to $73, Deutsche Bank to $79, Wells Fargo to $71, JPMorgan to $70, and Barclays to $67. Fox declared a $0.24 quarterly dividend. Bulls point to the FIFA Men's World Cup in June and midterm election advertising cycle. Risk: advertising revenue was down 24% due to absence of Super Bowl comparable.
May 20Fox Corp jumps 7% on record Q3 FY2026 results with $4B revenue and $954M adjusted EBITDA; Evercore raises PT to $73Positive▶
Fox Corporation reported its best Q3 fiscal 2026 on record on May 11, with total revenue of approximately $4B and adjusted EBITDA of $954M (up 11%). Adjusted EPS of $1.32 crushed the $0.97 consensus. Distribution Revenue grew 3% companywide with Cable up 5% YoY, while Tubi revenue grew 23% and reached breakeven for the third consecutive quarter. Advertising revenue fell 24% due to the absence of the prior-year Super Bowl but would have grown double digits ex-Super Bowl. Shares popped 7.6% on the print. Evercore ISI raised its PT to $73 from $70 (In-Line) on May 12. Catalysts ahead include the FIFA Men's World Cup in June and midterm election ad cycle.
May 19Fox Corp's record fiscal Q3 with $4B revenue and Adjusted EBITDA up 11% triggers analyst PT hikes; secures two more NFL games for 2026 season.Positive▶
On May 11, 2026, Fox Corporation reported its best fiscal third quarter on record with total revenue of $4 billion (vs $3.82B expected) and Adjusted EBITDA of $954 million, up 11%. Adjusted EPS of $1.32 crushed the $0.97 consensus by 33%. FOXA Class A shares jumped 7.59% to $67.72 on May 12. The same week, Fox acquired media rights to two additional NFL games for next season (a Saturday week 10 game and a week 15 game), giving the network a Sunday triple-header including a Munich overseas game. Multiple analyst price targets were raised May 12: Evercore ISI to $73 from $70 (In-Line), Deutsche Bank to $79 from $76, and Wells Fargo to $71 from $67. Bulls cite the FIFA Men's World Cup in June and the midterm ad cycle as additional 2H tailwinds. Risk: long-term cord-cutting and the need to keep paying up for premium sports rights remain structural headwinds.
May 18Fox Corp surged ~7% after May 11 Q3 FY26 record EBITDA of $954M (+11%) and added two more NFL games; Evercore ISI raised PT to $73 and Deutsche Bank to $79 on May 12.Positive▶
Fox Corp announced on May 11, 2026 it acquired the rights to two additional NFL games for the upcoming season, including a Saturday game in week 10 and a week 15 contest that gives Fox a Sunday triple-header featuring a Munich overseas game. The same day, Q3 fiscal 2026 results delivered a record fiscal-third-quarter adjusted EBITDA of $954M (+11% YoY), adjusted EPS of $1.32 (+20%) and total revenue of ~$4B, sending shares up roughly 7%. Distribution Revenue grew 3% companywide with Cable up 5%, and Tubi revenue grew 23% with total view time up 19%, reaching breakeven for the third straight quarter. Fox News CPMs and national pricing are up over 45%, with 200 new advertising clients in FY26 on top of 350 in FY25. On May 12, Evercore ISI raised its price target to $73 from $70 and Deutsche Bank raised its PT to $79 from $76. FIFA Men's World Cup in June and midterm-election ad cycle remain key catalysts.
May 15Fox Corp Class A jumps 7.6% on May 11 Q3 FY26 beat with record EBITDA; analysts raise targets to $73-$79Positive▶
Fox Corp Class A shares surged 7.59% to $67.72 on May 12 after its May 11 Q3 FY26 report showed record total revenue of $4.0B and adjusted EBITDA of $954M (+11%), with adjusted EPS up 20% to $1.32 (33% above consensus). Adjusted net income hit $570M. Distribution revenue grew 3% companywide (Cable +5%); advertising was down 24% due to absence of prior-year Super Bowl but would have grown double digits ex-Super Bowl. Tubi revenue grew 23% with total view time up 19%, hitting breakeven or better for the third consecutive quarter; US monthly users were up 28% to 97M. Wells Fargo raised PT to $71 from $67 (Equal Weight), Deutsche Bank raised to $79 and Evercore ISI raised to $73 on May 12. On May 13, Fox announced its 2026-27 broadcast schedule. Fox One streaming launch, World Cup and US midterms remain near-term catalysts.
May 14Fox Corp shares surge 7.6% to $67.72 after Q3 EPS beats by 33% on $4B revenue and Tubi-driven digital growthPositive▶
Fox Corp Q3 fiscal 2026 results on May 11 delivered net income of $166M and adjusted EPS of $1.32 (up 20%), with adjusted EBITDA of $954M up 11% — a record fiscal Q3. Adjusted EPS beat estimates by 33.33% on revenue of $4B. Tubi free ad-supported streaming emerged as a major growth driver. Distribution revenue up 3% companywide with Cable up 5%; advertising fell 24% on Super Bowl absence (would have grown double-digits ex-Super Bowl). Wells Fargo raised PT to $71 from $67 (Equal Weight). Fox struck a deal for two more NFL games next season including a Sunday triple-header with a Munich game.
May 13Fox Corp shares surged 7.6% on May 12 after fiscal Q3 2026 adjusted EPS jumped 20% to $1.32 on record EBITDA of $954M.Positive▶
Fox Corp reported strong fiscal Q3 2026 results on May 11 with revenue of $4.0B, adjusted EBITDA of $954M (up 11% to a record Q3), and adjusted EPS of $1.32 (up 20% YoY) that beat estimates by 33%. GAAP net income was $166M ($0.38 per share). Shares jumped 7.59% to $67.72 on May 12. Distribution revenue grew 3% (Cable +5%), advertising revenue declined 24% on prior-year Super Bowl absence but would have grown double-digits ex-Super Bowl. Strategic highlight: FOX Sports secured rights to air two additional national NFL games. Tubi continues to drive digital revenue growth. Risk: secular cord-cutting.
May 12Fox Corp reported record fiscal Q3 2026 results May 11 with adjusted EBITDA up 11% to $954M and adjusted EPS up 20% to $1.32, plus two new NFL games acquired.Positive▶
Fox Corporation reported fiscal Q3 2026 results on May 11, with total revenue of $4 billion and record adjusted EBITDA up 11% to $954 million. Net income was $166 million ($0.38 per share); adjusted net income was $570 million with adjusted EPS up 20% to $1.32. Distribution revenue grew 3% companywide, with the Cable segment up 5% YoY. Advertising revenue was down 24% due to the absence of the prior year's Super Bowl but would have grown double-digits excluding that. Fox One drove distribution revenue gains with lower-than-expected churn. Tubi achieved breakeven or better for three consecutive quarters. Fox acquired rights to two additional national regular season NFL games, including the first broadcast-TV triple-header in history.
May 11Fox Corp set to report Q3 fiscal 2026 earnings May 11 with revenue expected to decline 12.7% YoYNeutral▶
Fox Corporation is set to report Q3 fiscal 2026 results on Monday, May 11, 2026, with results expected at 8:00 a.m. ET and webcast at 8:30 a.m. ET. Analyst expectations call for EPS of $1.02 and revenue of $3.79 billion, reflecting a 12.7% year-over-year revenue decline, reversing the prior year's 26.8% increase. President and COO John Nallen will participate in MoffettNathanson Media, Internet & Communications Conference 2026 on May 13. Recent stock returns are mixed: down 1.3% week-over-week, up 5.1% over 30 days, down 15% year-to-date and up 25.5% over the past year. Discounted cash flow analysis suggests Fox is undervalued by 26.4%. Horizon Investments cut its position by 92.7%.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| WBDWARNER | $26.40 | +0.59% | -3.1% | -3609.3x | 1.55 | $65.8B |
| FOXAFOX | $51.78 | +0.90% | -20.5% | 8.9x | 0.52 | $21.5B |
| FOXFOX | $47.04 | +0.65% | -19.6% | 8.2x | 0.52 | $19.6B |
| GOOGLALPHABET | $365.10 | +0.36% | -6.2% | 25.1x | 1.24 | $4.44T |
| GOOGALPHABET | $363.59 | +0.41% | -5.9% | 25.0x | 1.24 | $4.42T |
| METAMETA | $573.62 | +1.06% | -5.8% | 15.7x | 1.23 | $1.44T |
Key Fundamentals
RSI (14-Day)
52-Week Range
Moving Averages
Price below 200d MA — bearish structure.