DOJ Closes Antitrust Investigation as Fox Completes $22 Billion Roku Acquisition

Fox finalized the acquisition Friday, Nov. 6, months ahead of its previously anticipated closing date in the first half of 2027, according to Variety.

The Justice Department’s decision removes a significant regulatory obstacle to the deal, which combines Fox’s television programming and streaming services with Roku’s connected-TV operating system, advertising technology and distribution network.

The regulatory review focused on concerns that Fox could use its control of Roku’s platform to favor its own streaming services, including Tubi and Fox One, potentially disadvantaging competing content providers that rely on Roku to reach viewers.

The department concluded that the acquisition was unlikely to substantially reduce competition, citing the availability of alternative streaming platforms and Roku’s commercial incentive to continue offering consumers access to a broad range of programming.

As part of the review, Fox made commitments intended to protect competition on Roku’s platform, including maintaining access for rival streaming services and avoiding preferential treatment for its own programming in search results.

The company also agreed to preserve consumers’ ability to customize the arrangement of applications on Roku devices and maintain protections for commercially sensitive information belonging to competing content providers.

The decision allows Fox to move forward with integrating Roku into its digital operations at a time when traditional television companies are seeking new sources of advertising revenue and direct relationships with streaming audiences.

The acquisition brings Roku’s connected-TV platform, which reaches more than 100 million households worldwide, into Fox’s portfolio of news, sports and entertainment businesses. It also combines two major free, advertising-supported streaming services: Fox’s Tubi and the Roku Channel.

According to Variety’s reporting on the Justice Department’s review, regulators examined whether the merger could weaken competition among free streaming services or allow Fox to restrict competitors’ access to Roku’s platform. The department issued additional requests for information to both companies in September before closing its investigation in November.

Related: Fox’s $22 Billion Roku Takeover Nears US Antitrust Approval

Regulators determined that Roku’s dependence on carrying a wide selection of programming would discourage Fox from restricting competing services. Such restrictions could drive viewers to alternative connected-TV platforms, potentially damaging Roku’s business.

Fox’s commitments include continuing to carry non-Fox programming for at least three years, providing certain data products to third parties on commercially reasonable terms and maintaining safeguards for competitors’ sensitive information.

The Justice Department said it would continue monitoring competition in the sector and could take further action if circumstances change.

Meanwhile, Fox has established a new division, Fox Digital Platforms, bringing together Roku, Tubi, Fox One and other digital businesses. Roku founder Anthony Wood will serve as co-chair alongside Paul Cheesbrough, who will also become the division’s chief executive.

The acquisition gives Fox greater control over how streaming content reaches viewers as traditional television audiences continue to decline. It also strengthens the company’s advertising business by combining Roku’s distribution network with Fox’s existing programming and digital services.

Fox expects approximately $400 million in annualized cost savings within two years of the acquisition, according to the company’s announcement.

The transaction also changes Fox’s ownership structure. Former Roku shareholders will hold approximately 26% of the combined company’s outstanding shares, while existing Fox shareholders will retain about 74%.

Source: Variety