An article summarized by Semafor:
Fox’s planned $22 billion acquisition of streaming platform Roku is facing additional scrutiny from the U.S. Justice Department. DOJ antitrust officials are seeking another round of information and documents from the companies, known as a “second request.” While this is a standard part of some merger reviews, it indicates that regulators are taking a closer look at the deal’s potential impact on competition.
The merger would combine Fox’s news and sports content with Roku’s connected-TV operating system, which reaches roughly 100 million streaming households. Competitors are concerned Fox could give preferential treatment to its own programming, particularly because Roku’s free, ad-supported channel competes with Fox-owned Tubi. Fox CEO Lachlan Murdoch has said he expects Roku and Tubi to operate separately while allowing Fox to sell advertising across both businesses.
The acquisition would also give Fox access to Roku’s large audience and consumer data, potentially helping the company tailor programming and advertising. The deal comes as Fox News and the broader traditional media industry try to reach younger audiences while facing an aging core audience. The DOJ has not said whether it will ultimately challenge the transaction, and the additional review does not necessarily mean the deal will be blocked.
