The Justice Department is reportedly widening its antitrust inquiry into Fox Corp.‘s  (NASDAQ: FOXA) (NASDAQ: FOX) $22 billion acquisition of Roku Inc. (NASDAQ: ROKU), planning to issue a “second request” for additional documents and data from both companies.

Rivals Have Raised Concerns

Rivals have raised concerns that Fox could favor its own programming once it controls Roku’s platform, according to a Semafor report published Tuesday.

Roku’s ad-supported channel could compete directly with Tubi, which Fox already owns, the report added, citing people familiar with the matter.

Fox, Roku, and the DOJ did not immediately respond to Benzinga’s request for comment.

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The Deal’s Terms

In June, Fox agreed to acquire Roku in a cash-and-stock deal valued at roughly $22 billion in enterprise value, with Roku shareholders receiving $160 per share, $96 in cash and 0.9693 shares of Fox Class A stock.

The deal would combine Fox’s live sports, news and entertainment assets, including Tubi, with Roku’s connected TV platform, first-party data capabilities, and relationships with more than 100 million streaming households worldwide.

Roku founder and CEO Anthony Wood is expected to join Fox’s board once the deal closes, which the companies had targeted for the first half of 2027.

Plans to Keep Platforms Separate

Fox CEO Lachlan Murdoch told investors on a June conference call that the plan was to keep Roku’s platform and Fox’s existing streaming service Tubi operating separately.

“It’s too early to say, but our expectation is fully that you keep the services separate,” he said. “They serve consumers and our viewers in different ways,” he said.

Price Action: Fox’s Class A stock closed 0.29% lower on Tuesday at $65.2 and fell another 0.23% in extended trading. Its Class B stock fell 0.31% to $58.24 and gained 0.02% in after-hours trading. Roku fell 0.16% to close at $155.34 and lost 1.73% in extended trading.

Roku’s stock has a Momentum score in the 93rd percentile and a Growth score in the 84th percentile, according to Benzinga Edge Rankings.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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