DOJ wants more answers on Fox’s $22B Roku deal
Fox’s $22 billion plan to buy Roku has hit a new hurdle. The Justice Department sent Fox and Roku what’s known as a “second request” on Tuesday, asking the companies to turn over more data and documents as it takes a closer look at the deal. That’s a fairly standard step in a major antitrust […]
The Justice Department has demanded more information from Fox and Roku regarding their planned $22 billion acquisition of Roku. This is a common step in a major antitrust review, but it reveals that regulators still have numerous questions about the potential impact on competition and consumers. Semafor initially reported on the investigation.
Fox, which owns a vast library of news, sports, and entertainment content along with the free ad-supported streaming service Tubi, and Roku, which operates one of the largest platforms used by millions of TVs and streaming devices, are both under scrutiny. The deal is believed to be more than just a typical media acquisition due to the significant influence Roku has over how viewers discover and watch streaming services.
This raises concerns among Roku's competitors about possible favoritism, such as whether Fox-owned Roku would give Fox's services more prominent placement, use Roku's data to strengthen its advertising business, or push down the placements of rival streaming services. Fox CEO Lachlan Murdoch has attempted to reassure competitors that the two businesses should remain separate.
The investigation also coincides with the DOJ's criticism of how it handles major mergers, including concerns about political influence. For example, the acquisition of Warner Bros. Discovery by Paramount faced criticism due to the close ties of CEO David Ellison to President Trump. The DOJ's handling of this Fox-Roku deal could serve as a significant test of how it reviews politically sensitive mergers, potentially demonstrating that it doesn't favor politically connected companies.
Given the Murdochs' ties to President Trump, the DOJ's scrutiny over other media deals involving Trump allies adds another layer of importance to this case. The deal is expected to be finalized in the first half of 2027.
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