Fox Corp. officially closed its $22 billion acquisition of Roku on Friday, a move that gives the media giant control over a streaming platform reaching more than 100 million households in the US. The Department of Justice’s Antitrust Division announced it closed its investigation into the deal, finding that the transaction "is not likely to result in harm to competition."
To secure the deal, Fox committed to several conditions to ensure Roku remains an "open and neutral content partner" post-merger. Fox pledged to continue carrying non-Fox content on Roku for at least three years, "consistent with historical Roku practice." The company also committed to not discriminating against non-Fox content in search results and allowing users to continue reconfiguring application configurations on the home screen. Furthermore, Fox agreed to provide data products to third parties on commercially reasonable terms and maintain existing contractual firewall commitments for competitively sensitive non-Fox content data for at least three years.
The DOJ stated it analyzed whether the merger might harm competition among free, ad-supported streaming providers or allow Fox to disadvantage rivals. The agency concluded that the entry of new providers would be "timely, likely, and sufficient" to prevent substantial risk of harm. The investigation also found that the merged firm would suffer "monetary and reputational harm" if it attempted to harm rivals, as consumers could switch to other connected TV platforms. The DOJ noted it will continue to evaluate the industry and may take action if facts change.
Fox Corp. CEO Lachlan Murdoch stated on Friday that the top priority for the combined company is to "continue to relentlessly serve audiences and partners, while reinforcing the openness and choice that is the essence of the Roku platform." Murdoch had previously expressed expectations that the combination of Roku technology and Fox content would grow viewership in the US.
Roku founder and CEO Anthony Wood is joining Fox Corp. as co-chair alongside Paul Cheesbrough of Fox Digital Platforms, a new division housing Roku, Tubi, Fox One, Red Seat Ventures, and other digital businesses. Wood, who now serves on Fox’s board of directors, stated that the mission to give people a better way to watch TV "doesn’t change today," and that Fox "wholly shares our commitment to staying open to every content partner."
