Report: Fox's $22 Billion Roku Acquisition Poised to Clear US DOJ Scrutiny
According to Semafor, Fox's acquisition of Roku is expected to clear US DOJ scrutiny via a consent decree, overcoming political pressure from Newsmax owner Chris Ruddy.
Exclusive reporting by tech media outlet Semafor indicates that Fox Corporation's $22 billion acquisition of streaming platform Roku is expected to receive approval from the U.S. Department of Justice (DOJ) in its antitrust review, likely through a "consent decree." This development comes despite efforts by Chris Ruddy, owner of right-wing media network Newsmax and an ally of President Donald Trump, to block the deal.
It remains unclear what specific terms the consent decree would entail or what conditions are being considered. People familiar with the matter noted that the DOJ could still change course. Both Fox and Associate Attorney General Stanley Woodward declined to comment on the deal. In a statement, Woodward said: "However, we can affirm that this DOJ under President Trump’s leadership will continue to prioritize affordability for all Americans across our economy."
The transaction would unite Fox’s empire of news and sports content with Roku’s dominant connected-TV operating system. Rivals have expressed concern that Fox might favor its own content. Roku’s free, ad-supported channel also competes for viewers and content with Tubi, which is owned by Fox. Fox CEO Lachlan Murdoch has stated his "expectation" is to run the two businesses separately while selling advertising across them.
Semafor first reported in September that antitrust regulators were widening their inquiry into the deal, days before the two companies confirmed the deeper probe, known as a "second request." That enhanced scrutiny came in part because of pressure from Newsmax majority owner Chris Ruddy, who bills himself as a Trump confidant and has had a long-running spat with Fox owner Rupert Murdoch. Murdoch’s camp has previously dismissed Newsmax’s efforts as a bid to "sue their way out of their own competitive failures," but it is clear that Ruddy has been a headache for the Murdoch clan. Investors have fretted about the possibility that Fox’s deal for Roku could get tied up as a result of Ruddy’s efforts.