Out of the Wood(s)? The Roku Deal Seems Like Right Move, but Technical Overhang and Need for Conviction on Strategic Synergies Keep Us Neutral

Research evidence excerpt

Out of the Wood(s)? The Roku Deal Seems Like Right Move, but Technical Overhang and Need for Conviction on Strategic Synergies Keep Us Neutral

J P M O R G A N North America Equity Research

04 August 2026

FOX

Out of the Wood(s)? The Roku Deal Seems Like Right Neutral

Move, but Technical Overhang and Need for Conviction FOXA, FOXA US

on Strategic Synergies Keep Us Neutral Price (03 Aug 26):$58.70

Price Target (Dec-27):$70.00

Following Fox’s announcement to acquire Roku, we take a deeper look at the Media, Entertainment and

proposed deal structure, Roku’s business model and financial profile, and its Advertising

competitive positioning in the fast-growing CTV market. We also discuss strategic David Karnovsky, CFA AC

considerations of the merger and present an illustrative pro forma model and share (1-212) 622-1206

price sensitivity to valuation multiples post close. FOXA shares fell almost 30% david.karnovsky@jpmorgan.com

in the first 10 days after the transaction was announced (vs. SPX -1%), which, in Alexey Philippov, CFA

our view, mostly reflects technical pressure from equity dilution and investor-base (1-212) 622-0810

differences, with ROKU shareholders receiving a portion of the consideration in alexey.philippov@jpmorgan.com

FOXA shares. We view the proposed transaction price of $160 as attractive for Douglas Wardlaw

(1-212) 622 4885

FOXA shareholders, with a minimal control premium (BBG consensus price target douglas.wardlaw@jpmchase.com

for ROKU averaged $150 before the agreement) and a sound structure (fixed

Kiscada A Hastings

exchange ratio, 40% paid with FOXA equity trading close to historical highs). The (1-212) 622-0226

deal also materially improves Fox’s growth profile, alleviating investor worries kiscada.hastings@jpmchase.com