DOJ Expands Antitrust Inquiry into Fox's Acquisition of Roku

The U.S. Justice Department is expanding its antitrust investigation into Fox Corporation's $22 billion acquisition of the streaming platform Roku, according to sources familiar with the matter. DOJ staff intends to request additional information from both companies through a process known as a 'second request,' which typically involves another round of data and document sharing. While this is a common procedure, it indicates concerns regarding the merger's potential impact on consumer access to streaming content. The acquisition aims to combine Fox's extensive content portfolio, including news and sports, with Roku's leading connected-TV operating system. Some competitors have expressed worries that Fox may prioritize its own content over others. Fox CEO Lachlan Murdoch stated that he expects to operate both businesses separately while managing advertising across them. A spokesperson for Fox declined to comment, and the DOJ also did not provide any remarks. Murdoch noted in June that Fox has historically been successful in growing and monetizing platforms while distributing content from various partners, addressing antitrust concerns. The DOJ's antitrust division has faced scrutiny over its management of significant mergers, and closely examining deals that affect consumer finances, even if they are ultimately approved, may help mitigate some of this criticism. The Roku acquisition represents Murdoch's first major initiative since he became CEO three years ago. Access to Roku's audience of 100 million homes and its data would enable Fox to better customize its programming for viewers. Despite its strong cash flow from cable news, Fox faces challenges similar to those in the broader industry, including an aging audience that attracts lower advertising rates compared to younger demographics. Recently, Fox terminated its relationship with Maria Bartiromo, a prominent figure in Fox News and Fox Business, who was known for her close ties to former President Trump and for promoting unsubstantiated claims regarding voting fraud in the 2020 election. Bartiromo was reportedly dismissed for sharing confidential directives from Fox management about coverage of a Trump speech, a claim her lawyer has contested.