By Liz Hoffman and Corrie Driebusch
In a market that has companies, investors and bankers spooked, some deals are still happening.
On Monday night, after the U.S. stock market suffered its biggest one-day loss since 1987, Fox Corp. reached out to Morgan Stanley with a request--help the company sell its 5% stake in Roku Inc., according to people familiar with the matter.
The bank put up its own capital to take 6 million shares of Roku off Fox's hands. It quickly sold the stock for $58 apiece to investors before the market opened for trading today.
It turned out to be a savvy bet: Roku shares rose nearly 9% by Tuesday afternoon as the stock market rallied, nearing $70 a share.
Fox has owned a stake in Roku since 2013 but the two sparred earlier this year when Roku threatened to drop Fox stations. Fox has lately been in talks to acquire Tubi, another streaming player.
Fox Corp. and Wall Street Journal parent News Corp share common ownership.