Justice Department to take a closer look at Fox’s $22 billion Roku deal
Rivals are concerned that Fox could favor its own content platforms over competitors’ if it owns Roku.
The US Justice Department is expanding its antitrust investigation into Fox's $22 billion acquisition of Roku, according to sources familiar with the situation. The Department is expected to seek additional information from both companies through a "second request," a process that typically involves further data and document sharing.
This move indicates concern about the potential impact of the merger on how consumers access streaming content. The deal combines Fox's extensive content portfolio, including news and sports, with Roku's leading connected-TV platform. Some industry rivals worry that Fox may prioritize its own content over others. Roku's free, ad-supported channels also compete with Fox-owned Tubi for viewers and content.
Fox CEO Lachlan Murdoch stated his intention to keep the two businesses separate while sharing advertising revenue. However, Fox declined to comment on the matter, and the DOJ also declined to comment. Fox has previously demonstrated success in growing and monetizing platforms while hosting content from partners, according to Murdoch.
The Justice Department's antitrust division has faced criticism for its handling of high-profile mergers, including the role of lobbyists in securing approvals. This closer look at the Roku deal may help address some of those criticisms by providing a more thorough examination before the merger is approved.
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