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Justice Department to take a closer look at Fox’s $22 billion Roku deal
Semafor • • business
Key Points:
- The US Justice Department is expanding its antitrust investigation into Fox’s $22 billion acquisition of streaming platform Roku, signaling increased scrutiny over the merger's impact on consumer access to streaming content.
- The DOJ plans to issue a "second request" for additional data and documents from Fox and Roku, a move that often indicates regulatory skepticism about potential anti-competitive effects.
- The merger raises concerns among rivals that Fox may prioritize its own content on Roku’s platform, especially since Roku's free ad-supported channel competes directly with Fox-owned Tubi.
- Fox CEO Lachlan Murdoch aims to operate Fox and Roku as separate businesses while leveraging advertising sales across both, seeking to capitalize on Roku’s 100 million household reach and consumer data.
- The DOJ’s intensified review comes amid broader criticism of its antitrust enforcement, and the Roku deal represents Murdoch’s first major acquisition since becoming Fox CEO, as the company navigates challenges including an aging viewer base and recent internal controversies.
