Key facts
- Fox Corp. is proposing to acquire Roku for $22 billion.
- Democratic lawmakers have requested an impartial antitrust review of the deal.
- Concerns focus on vertical issues in streaming distribution and connected-TV advertising.
- The lawmakers previously questioned media companies about their content carriage policies and the spread of misinformation.
- The combined entity is projected to become the third-largest player in U.S. television viewing share.
- The deal is expected to close in the first half of 2027, subject to regulatory approval.
Fox Corp. has announced its intention to acquire streaming company Roku for $22 billion, a move that is expected to draw significant antitrust scrutiny from U.S. regulators.
Democratic lawmakers, including Representatives Anna Eshoo and Jerry McNerney, have urged for an impartial review of the proposed deal. Their concerns echo previous inquiries made to various media and technology companies regarding content carriage decisions and the dissemination of misinformation, particularly concerning the 2020 election and the COVID-19 pandemic. The lawmakers previously questioned how companies apply moral or ethical principles to channel selection and whether channels like Fox News, Newsmax, and OANN would continue to be carried.
Fox Corp. stated it will pay $96 in cash and 0.9693 shares of its Class A common stock for each Roku share, valuing the deal at $160 per share. The acquisition aims to give Fox access to Roku's channel, first-party data, and a direct relationship with over 100 million households. The combined entity is projected to become the third-largest player in U.S. television by viewing share. Lachlan Murdoch, CEO of Fox Corp., described the acquisition as a "defining moment" for the company, aligning with its strategy focused on live news and sports.
Both companies' boards have unanimously approved the transaction, which is expected to yield approximately $400 million in cost savings. Roku founder Anthony Wood will join the Fox board of directors following the deal's anticipated closure in the first half of 2027. The acquisition will be subject to approval by Trump administration regulators.