Morgan Stanley resumed coverage on Fox Corporation with a new price target

Fox Corporation (FOXA) shares rose 4.1% due to optimism around its Roku acquisition, synergy potential, and recent record earnings. The acquisition, completed on November 6, 2026, is expected to enhance streaming scale and ad technology. Analysts highlighted benefits from the combination, including stronger free-cash-flow potential. Fox's fiscal first-quarter results showed record revenue and higher profit, driven by sports programming and political advertising.

Fox Corp. closed an $8.4 billion senior notes offering, using proceeds to repay its Roku acquisition bridge loan. The seven note series have coupons from 5.625% to 7.300% and mature between 2029 and 2066. Net proceeds were approximately $8.32 billion after expenses.

Fox completed its acquisition of Roku, with expectations of increased Fox content promotion on the platform. Key conditions include maintaining non-Fox content for three years and non-discrimination in search results. Tubi and the Roku Channel will remain separate for now, but Fox hints at potential future integration. Roku is exiting the smart home business and will discontinue the Aquatic Life screensaver.

Fox Corporation (FOXA, FOX) shares fell after launching an $8.4 billion bond offering to refinance debt from its $22 billion Roku acquisition. The deal raises questions about Fox's ability to generate sufficient cash flow to cover increased borrowing costs, with bonds carrying interest rates over 7%. Despite concerns, institutional demand was strong, and analysts raised price targets to $82-$83. Investors will watch debt servicing, cost savings, and Roku's advertising performance.

Fox, which owns Tubi and FOX One, has completed its acquisition of Roku, a streaming platform with over 100 million users. Fox CEO Lachlan Murdoch stated this merger is a strategic extension of their focus on streaming. To gain DOJ approval, Fox pledged to carry non-Fox content for at least three years and not discriminate against it in search results. The DOJ found the merger unlikely to harm competition.

The U.S. Department of Justice approved Fox's $22B acquisition of Roku, citing assurances of market neutrality. Watchdog group AELP called for an investigation, citing a $1M Fox donation to Melania Trump's initiative during the review. The deal faces potential scrutiny under the incoming Democratic Congress.