A group of Democratic lawmakers is calling on the U.S. Department of Justice to subject Fox Corp.’s proposed $22 billion acquisition of Roku Inc. to heightened antitrust scrutiny, arguing that the transaction could significantly expand Fox’s influence across the streaming and connected television ecosystem.
In a letter sent to Associate Attorney General Stanley Woodward, Senator Elizabeth Warren of Massachusetts and Representative Becca Balint of Vermont urged federal regulators to conduct an independent review of the deal and guard against any political influence in the merger assessment process. The lawmakers’ concerns were first reported by Deadline‘s Ted Johnson.
According to the lawmakers, the transaction would combine major streaming and advertising assets under a single corporate umbrella, potentially allowing Fox to exercise greater control over content distribution, advertising markets and viewer access.
Fox announced in June that it had agreed to acquire Roku in a cash-and-stock transaction valued at approximately $22 billion, offering shareholders $160 per share. The companies said the combination would unite Fox’s media assets — including ad-supported streamer Tubi and its sports and news programming — with Roku’s connected TV platform, which reaches more than 100 million streaming households globally.
Concerns Over Market Concentration
In their letter, Warren, Balint and several other Democratic lawmakers argued that the merger could reduce competition in free, ad-supported streaming television and increase Fox’s ability to influence how content is presented to consumers.
The lawmakers warned that integrating Tubi with Roku’s platform and The Roku Channel could give the combined company incentives to favor its own programming or advertising offerings over rivals. They also suggested that the merger could eventually diminish consumer choice or alter pricing dynamics in segments that have historically been offered free to viewers.
According to a statement released by Warren’s office, the proposed transaction would combine two of the largest free streaming services in the United States and provide Fox with significant reach across connected television devices and streaming distribution channels.
Antitrust experts have increasingly focused on so-called “vertical” combinations that link content ownership with distribution infrastructure. Such deals can raise concerns about self-preferencing, data advantages and the ability of merged firms to disadvantage competitors without necessarily eliminating a direct rival.
Related: Fox Strikes $22 Billion Deal to Acquire Roku in Major Media Bet on Streaming and Advertising
Roku occupies a particularly influential position in the connected TV market because it serves both as a hardware and software platform while also operating advertising businesses and its own streaming channel. Fox, meanwhile, has been expanding its digital footprint through Tubi and investments in streaming and advertising technologies.
Questions About Regulatory Independence
Beyond competition concerns, lawmakers also requested information regarding the Justice Department’s handling of major media mergers more broadly.
The letter referenced recent criticism surrounding federal review of other large entertainment transactions, including the Justice Department’s decision to clear the proposed Paramount-Warner Bros. Discovery combination. Some Democratic lawmakers have alleged that political considerations may have affected merger enforcement decisions, allegations that DOJ officials have not publicly endorsed.
Warren and Balint asked the department to disclose information regarding communications between DOJ officials, the White House and outside parties concerning antitrust matters and to clarify whether career antitrust staff have faced pressure in merger reviews.
The lawmakers requested responses by the end of July.
Fox and Roku Promote Strategic Benefits
Fox and Roku have framed the acquisition as a strategic effort to strengthen their positions in the increasingly competitive streaming landscape.
In announcing the agreement, Fox said the combination would create a scaled media and technology platform capable of improving content discovery, advertising capabilities and consumer engagement. The company argued that integrating Roku’s platform technology and audience reach with Fox’s portfolio of live sports, news and entertainment programming would better position the combined entity against larger technology and media rivals.
Roku similarly told users that the transaction would not immediately alter the platform experience and said it expected continued investment in its products and services following completion of the deal. The companies have indicated that the acquisition is expected to close during the first half of 2027, subject to shareholder and regulatory approvals.
Source: Deadline
