Banks Matthew C. sold $87K of ROKU

Fox Corporation Class B (FOX) reported Q1 revenue of $4.57B, adjusted EPS of $2.54, and 54% adjusted EBITDA growth. Its Roku acquisition awaits DOJ review after shareholder and regulatory approvals. FOX One gained subscribers, mostly without traditional cable. JPMorgan raised its price target to $83.

Roku's Q3 2026 ad revenue rose 23% to $727.4M, with a 7% drop in average impression price. Video impressions grew 33%, and ad gross margin increased to 63.2%. The company did not provide a financial outlook due to its pending acquisition by Fox Corporation.

Roku reported strong Q3 results, with revenue of $1.5B (up 24% YoY) and EPS of $1.20, beating estimates. Fox Corp (FOXA) is acquiring Roku (ROKU) for $160 per share, a deal seen as justified by Roku's growth. Fox's stock rose 7.12% on the news. Roku's ad and subscription revenue both grew 23%, but device margins were negative. The deal is expected to close in 2027, pending regulatory approval.

Roku reported Q3 hardware losses doubling to $48.6M due to AI chip shortage, with negative 25.1% gross margin. Despite a 33% revenue increase from price hikes, hardware losses remain significant. Roku's net income rose to $183.3M, with total revenue at $1.5B.

Fox's $22 billion acquisition of Roku is nearing US antitrust approval, potentially under a consent decree with conditions. The deal, announced in June, would combine Fox's media businesses with Roku's streaming platform, addressing competition concerns. Fox expects $400 million in annual cost savings. The Justice Department's final decision is pending, with Fox having secured foreign approvals and shareholder backing.

The deal spread between Foxa (FOXA) and Roku (ROKU) narrowed to 64 cents Tuesday amid reports the DOJ may soon approve their $22B merger under a consent decree. Foxa has received all foreign approvals and aims to close the deal as soon as possible, according to the company. The DOJ's review is on a fast track, with staff finalizing their investigation.