Roku Dives as It Pulls Plug on Fox Before Super Bowl

Roku scrambles to reassure customers they would still be able to watch the Super Bowl.
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Shares of Roku (ROKU) - Get Report plunged Friday after the streaming device giant said it was pulling all Fox (FOXA) - Get Report channels off of its platform, two days before the Super Bowl.

Roku's stock price dropped 6.65% to $121.95 a share after news broke of the company's decision, effective Friday, to pull the Fox channels amid a carriage dispute with the broadcasting behemoth.

Roku scrambled to reassure customers they would still be able to watch the big game, which is being broadcast by Fox, suggesting in an email they sign up for free trial offers from other streaming services in order to watch the Super Bowl, including Hulu, YouTube TV and SlingTV.

"We also have thousands of other great channels in the Roku Channel Store," read the email, a copy of which was posted on a technical support chat page hosted by Roku. "We've got you covered!"

Investors, however, were feeling less than covered by the sudden announcement, which came as Roku's distribution agreement with Fox was set to expire.

Roku's stock price was on track Friday to fall to its lowest point since early November, when it slipped below $120 a share.

Fox, which stands to lose viewership for its showcase event, reacted sharply to Roku's move, slamming the streaming device company in a statement for using "intimidation tactics" in "a naked effort to use its customers as pawns."

Shares of Fox edged down 1.34% to $35.97 a share.

In a post on its technical issues support board, a Roku representative named seven Fox channels that are slated to be pulled, including Fox Sports and Fox News.