Fox Corp.’s $22 billion acquisition of San Jose-based Roku, operator of streaming services and seller of hardware devices, seemed like a straight-forward deal when it was announced in June: A growing media company was looking to bolster its presence in the fast-growing streaming industry.
But, on Wednesday, the Trump administration weighed in.
Fox Corp. and Roku said that the companies received requests from the DOJ on Tuesday for additional information in connection with the department’s review of the merger.
While Fox and Roku downplayed the requests, saying that they had expected the outreach, the timing of the move raised eyebrows among some analysts, who said it could signal further scrutiny of the transaction by the DOJ.
“The president has been outspoken on the fact that he will take retaliatory action against networks that say things that he doesn’t agree with, or they do things that he doesn’t agree with,” said Rob Enderle, principal analyst at advisory services firm Enderle Group.
The action follows President Trump’s surprise over Fox’s ouster of anchor Maria Bartiromo. She was pushed out after she had shared internal company texts with the Trump White House, which sources told the Times may have been the breaking point.
Trump said on social media that he couldn’t believe that Bartiromo will no longer have her shows on Fox. “Her fans, of which there are many, will not be happy,” he wrote on Truth Social on Sept. 3.
A DOJ spokesperson said the department could not comment on pending matters but said in a statement: “We can affirm that this DOJ under President Trump’s leadership will continue to prioritize affordability for all Americans across our economy.”
Fox announced in June its plans to acquire Roku for $22 billion, which would give the company access to Roku’s 100 million households that use its platform to connect to different streaming services. The deal would benefit Fox’s advertising business, as well as make it less reliant on traditional pay TV platforms.
Fox and Roku said they expect the merger to be done by the first half of 2027, subject to regulatory and shareholder approval, according to a Sept 9 filings with the U.S. Securities and Exchange Commission.
“FOX and Roku will continue to work cooperatively with the DOJ in its review of the Mergers,” Fox said in its filing.
Some legal experts said it is fairly standard for the DOJ to make an additional request for information.
“It doesn’t mean that their review is going to be more extensive than usual,” said Ray Seilie, an entertainment attorney at law firm Kinsella Holley Iser Kump Steinsapir.
For example, the DOJ made a second request for information when it reviewed Paramount Skydance’s deal to buy Warner Bros. Discovery, he said. The merging companies typically send information that helps the government figure out what the market impact will be of a merger, he added.
The DOJ ultimately approved Paramount’s planned acquisition, despite opposition from some industry stakeholders. State attorney generals and the Writers Guild of America have sued Paramount over the deal, raising antitrust concerns. Others have pointed out close ties between Trump and Larry Ellison, a financial backer of the deal, who has also donated money to a group that supports Trump. Ellison’s son, David, is CEO of Paramount Skydance.
Legal experts and analysts said they don’t think the combination of Fox and Roku raises antitrust issues because neither dominant players in streaming and have businesses that complement each other.
But one wild card is Trump.
“You never know what Trump is going to seize on and decide he wants to do,” said Bryan Sullivan, a partner with law firm Early Sullivan Wright Gizer & McRae on whether Trump will take retaliatory action through the DOJ in the Fox-Roku deal. “It’s chaos in the federal government and it could very well happen because of that reason, but it could also just be a blip and not a big deal.”
Staff writer Stephen Battaglio contributed to this report.
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