Fox’s proposed $22 billion acquisition of Roku has encountered a new regulatory hurdle. The U.S. Department of Justice (DOJ) issued a "second request" to both companies on Tuesday, demanding additional data and documents as part of an expanded antitrust review. This procedural step is common in major merger investigations, but it indicates that regulators have identified concerns beyond what was addressed in the initial filings.
The DOJ’s action follows an initial review period and signals a deeper examination of the deal’s potential impact on market competition and consumer choice. While a second request does not necessarily foreshadow a block, it extends the timeline and intensifies the scrutiny before a final decision is made.
Why regulators are digging deeper
The deal is not a typical media merger. Fox controls a vast library of news, sports, and entertainment content, alongside Tubi, its ad-supported streaming service. Roku, in contrast, operates one of the largest platforms that sit between viewers and streaming content. Its operating system is pre-installed on millions of smart TVs and streaming devices, giving it significant leverage over content discovery and distribution.
This structural overlap raises concerns among Roku’s competitors. Key questions include whether a Fox-owned Roku would prioritize Fox’s own services, such as Tubi or Fox Sports, in featured placements; whether it would leverage Roku’s user data to boost Fox’s advertising capabilities; and whether rival streaming apps might be deprioritized on Roku’s home screen or face less favorable terms.
Fox CEO Lachlan Murdoch has sought to assuage these fears, publicly stating that he expects the two businesses to operate independently. However, antitrust analysts note that such assurances are often insufficient to resolve competitive concerns without formal commitments.
Political context and DOJ credibility
The investigation unfolds amid broader criticism of the DOJ’s merger enforcement, particularly regarding potential political influence. The recent approval of Paramount’s acquisition of Warner Bros. Discovery drew scrutiny after it emerged that CEO David Ellison’s father, Oracle co-founder Larry Ellison, has close ties to President Trump. Critics viewed the approval as evidence of favoritism toward politically connected entities.
Against this backdrop, the DOJ’s decision to closely examine the Fox-Roku deal could serve as a test of its independence. Fox’s Murdoch family also maintains relationships with Trump, making this a sensitive case. A rigorous review would help demonstrate that the DOJ is not granting leniency to politically influential companies. Conversely, any perceived shortcuts could amplify existing criticisms.
The deal is projected to close in the first half of 2027, pending regulatory approval. As the review proceeds, stakeholders in the streaming and advertising industries will be watching closely for signals about how the DOJ balances competition policy with political realities in this high-stakes transaction.
via TechCrunch