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by stock_toaster 8 days ago
I've always wondered.. Why would a stock (roku in this case) trade below the acquisition price (currently showing around 141)? (160 in this case)

Does the market think this sale won't be approved by the current administration for some reason?
1 comments
0cf8612b2e1e 8 days ago
Sure seems like free money. In normal times, there is a chance this could get blocked, but a favored media outlet of the administration seems a lock.

Also, look at the five day chart. Shot up from $120 on Friday. Bunch of insiders knew early.

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stock_toaster 7 days ago
Ah. I think I figured it out.

> FOX is acquiring Roku in a cash-and-stock transaction valued at $160.00 per ROKU share. FOX will pay $96.00 in cash and 0.9693 shares of FOX Class A common stock for each Roku Class A and Class B share outstanding immediately prior to the effective time of the merger.

So not a straight $160/share cash, but $96/share cash and some FOX shares. Roku trading below 160 means the fox stock is not considered worth (160-96) by the market.

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0cf8612b2e1e 7 days ago
Fox also took a dive today. While $160 total could happen, seems likely to shortchange Roku shareholders.
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