JPM | US Special Situations Daily: June 16, 2026

Research evidence excerpt

JPM | US Special Situations Daily: June 16, 2026

Neetu Jhamb - Specialist Sales - US Special Situations AC (1-212) 272-5971 North America Specialist Sales J P M O R G A N

neetu.jhamb@jpmorgan.com JPM | US Special Situations

J.P. Morgan Securities LLC Daily:OLIN and HUNTSMAN

Announce MOE, FOX/ROKU

Research note

16 June 2026

ROKU. On the fundamentals, Fox would also emerge as the clear leader in the FAST space, with attendant synergies in

advertising scale and content acquisition, and there are arguably beneficial considerations in cross-promotion and added

distribution for core Fox sports and news properties. As for the negatives, there is the dilution in near-term FCF/share, which

along with selling from arbs we think drove down shares today. The timeline on the deal with a calendar 1H’27 close is longer

than we would’ve expected, and while the combined company’s share in streaming is small, we have to recognize the

unpredictability of today’s regulatory environment. At the same time, Roku ownership and integration brings execution risk

and complication to what was a recently a straightforward story of beat-and-raises, and any shareholder turnover could present

an overhang during the deal process. Ultimately, a key value driver will be what multiple is applied toward pro-forma

financials, and it’s uncertain at this stage whether investors will anchor toward recent FOXA valuation ranges (~7x EBITDA

and ~11x-12x FCF), or award the go-forward company for its greater streaming mix (ROKU has traded recently at mid-to-

high teens on 2027 EBITDA and FCF).

From a Roku perspective, we’re surprised that the company is a seller right now given its recent business momentum, with the

acquisition price only slightly above our prior December 2026 price target of $150.