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Fox Corp.’s bid for streaming platform Roku is undergoing review by the Justice Department, with the U.S. agency requesting additional documents related to the proposed deal.
On Tuesday, Sept. 8, “as expected, each of
Fox and Roku received a request for additional information and documentary material” — referred to as a “second request” in regulatory lingo — from the U.S. Department of Justice in connection with the DOJ’s review of the merger agreement, Fox Corp. disclosed in a filing Wednesday with the SEC. “Fox and Roku will continue to work cooperatively with the DOJ in its review.”
Fox still expects the Roku acquisition, valued at $22 billion, to be completed in the first half of calendar year 2027, subject to clearance by the DOJ and other regulators. The DOJ’s second request for documents extends the waiting period under the Hart-Scott-Rodino antitrust act for 30 days (during which time the parties are barred from closing the deal) after Fox and Roku have “substantially replied” to the information request.
The deal also remains subject to approval by shareholders of Fox Corp. and Roku.
In June, Fox announced an agreement to buy Roku for $160/share in a combination of about $14.2 billion in cash and the remainder in Fox Class A common stock.
The deal would dramatically enhance Fox’s streaming footprint. Roku would instantly make the TV-centric company a much bigger player in digital video advertising as well as major player in premium subscription VOD distribution.
The Roku acquisition “will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile,” Fox Corp. CEO Lachlan Murdoch said in June.
Fox said it’s “committed to continuing to operate Roku as an open, partner-friendly platform.” Roku founder and CEO Anthony Wood will have an ongoing role at the combined company once the deal closes.
