Fox’s ambitious $22 billion acquisition of Roku has encountered a significant obstacle.
On Tuesday, the Justice Department issued a “second request” to both companies, necessitating further data and documents as they delve deeper into the proposed deal. This is a common practice during antitrust examinations, indicating that the DOJ has additional inquiries following the companies’ initial submissions.
The news was first reported by Semafor, and we have since reached out to Fox for their official response.
Although a second request doesn’t necessarily indicate that the DOJ plans to block the merger, it does suggest that regulators seek a more thorough evaluation of how it might influence competition and consumer choices prior to granting approval.
There are numerous aspects to scrutinize, as this merger appears to extend beyond a typical media acquisition. Fox possesses a vast array of news, sports, and entertainment properties, in addition to Tubi, its free ad-supported streaming platform. Roku operates one of the leading interfaces between viewers and this array of content. Its operating system is embedded in countless TVs and streaming devices, granting Roku considerable sway over how consumers locate and access streaming options.
This situation raises pertinent questions for competitors, such as whether a Roku under Fox’s ownership would bias the placement of Fox’s services, if Roku’s data might be leveraged to enhance Fox’s advertising capabilities, and whether competing streaming services would be relegated to lower visibility on the platform.
Fox’s CEO, Lachlan Murdoch, has attempted to calm any fears from competitors, asserting that the two entities would operate independently.
This investigation also arrives amidst heightened scrutiny of the DOJ’s approach to significant mergers, including allegations of political bias. For instance, Paramount’s takeover of Warner Bros. Discovery faced backlash due to CEO David Ellison’s familial ties to billionaire Larry Ellison, a known associate of former President Trump. Critics suggested that the approval process raised concerns about political favoritism.
How the DOJ navigates the Fox-Roku acquisition could serve as a critical benchmark for the examination of politically sensitive mergers. A thorough review of this deal may demonstrate that the DOJ is not offering leniency to politically connected entities, especially given the Murdoch family’s ties to Trump and the ongoing scrutiny of other media transactions involving his associates.
The proposed merger is anticipated to close in the first half of 2027.
