Democratic Lawmakers Seek Antitrust Review of $22 Billion Fox-Roku Merger

The merger represents a massive consolidation of the FAST and AVOD sectors, potentially creating a dominant gatekeeper for ad-supported streaming. If approved, Fox would secure a direct distribution layer to over 100 million households, shifting leverage away from independent hardware and content providers. This scrutiny signals a growing regulatory focus on the data advantages inherent in vertical media mergers. High-level DOJ officials are now pressured to address allegations of "backroom deals" while balancing a shift toward negotiated settlements over litigation. Watch for the DOJ's July 30 response to determine if this scrutiny will delay the deal's projected 1H27 closing.

The $22 billion deal, first announced in June 2026, involves Fox paying $160 per share in a cash-and-stock transaction to acquire the streaming hardware and software pioneer. Per MediaPost (June 2026), the combined entity would control approximately 16% of U.S. streaming ad spend, generating an estimated $9 billion in annual advertising revenue. Analysts from LightShed Partners noted that the acquisition would allow Fox to bypass traditional pay-TV gatekeepers by owning the operating system level of the connected TV stack.

According to Nielsen data cited by NewsCastStudio (December 2025), Tubi and The Roku Channel together accounted for 5% of all U.S. TV viewing time, a figure projected to reach 10% by late 2026. This scale would place the combined streaming business as the third-largest player in U.S. television viewing, trailing only YouTube and Netflix. Parks Associates (May 2026) separately ranked Tubi as the number one FAST service in the U.S. with 80 million monthly viewers, followed immediately by The Roku Channel with 60 million.

The regulatory environment has become increasingly fraught under Associate Attorney General Stanley Woodward, who was confirmed in October 2025. Per The Wall Street Journal (June 2026), Woodward has internally advocated for resolving antitrust matters through settlements rather than lengthy trials to save taxpayer resources. This "light-touch" approach has drawn criticism from lawmakers who argue it weakens federal enforcement in high-stakes media consolidations and major tech cases, such as the ongoing DOJ litigation against Apple.