The Scoop
The US Justice Department is widening its antitrust inquiry into Fox’s $22 billion acquisition of streaming platform Roku, people familiar with the matter said.
DOJ staff plans to seek more information from the companies through what is known as a “second request,” which generally involves another round of data- and document-sharing, the people said. Though not unusual, the move suggests skepticism about the merger’s effect on how consumers access streaming content.
The deal, which unites Fox’s content empire of news and sports with Roku’s dominant connected-TV operating system, has worried some rivals, who fear that Fox will favor its own content. Roku’s free, ad-supported channel also competes for viewers and content with Tubi, which Fox owns. FOX CEO Lachlan Murdoch said his “expectation” is to run the two businesses separately while selling advertising across them.
A Fox spokesperson declined to comment. DOJ declined to comment.
Fox has historically been able to “grow and monetize [platforms] very effectively, while hosting and distributing broadcasting all of our partners’ content,” Murdoch said in June, when asked about antitrust concerns.
DOJ’s antitrust division has faced criticism over its handling of some high-profile mergers, including the role played by lobbyists in securing approvals. Closely scrutinizing deals that touch consumer pocketbooks — even if it ultimately approves them — could assuage some of its critics.
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The Roku deal is Murdoch’s first big move since taking over as CEO of his father’s empire three years ago. Getting access to Roku’s audience of 100 million homes and its data would allow Fox to better tailor its programming to consumers.
Fox’s cable news business continues to throw off huge amounts of cash but faces the same headwinds as the rest of the industry: an aging core demographic that draws weaker ad rates compared with younger consumers.
The company last week parted ways with Maria Bartiromo, a stalwart of Fox News and Fox Business who is a close Trump confidante and reported baseless claims about voting fraud in the 2020 election. Bartiromo was fired for passing along confidential directives from Fox management on coverage of a Trump speech, Status reported last week. Her lawyer has disputed the claims.