Fox Seen Gaining Revenue, Cost Synergies From Roku Deal, BofA Says

10:52 AM EDT, 10/16/2026 (MT Newswires) -- Fox (FOX) could see improved growth prospects and a stronger position in streaming through its planned acquisition of Roku (ROKU), which is expected to create significant revenue and cost synergies, BofA Securities said in a Friday note. The investment firm estimates $530 million in base-case revenue synergies and project about $400 million in cost synergies amid advertising efficiencies, streamlined ad-tech platforms and lower overhead. Revenue opportunities include bundling Fox's sports content with Roku's connected-TV advertising inventory. Another opportunity is attracting small businesses through Roku Ad Manager and Fox's local sales network, according to the note. The investment firm expects the combined company to achieve high-single-digit revenue growth, compared with low- to mid-single-digit growth for Fox on a standalone basis. It also anticipates margin expansion and healthy free cash flow. The deal is expected to close in early 2027. BofA upgraded its rating on Fox to buy from underperform and raised its price objective to $85 from $54. The company's shares were up nearly 2% in early Friday trading. Price: 58.22, Change: +1.08, Percent Change: +1.89