Fox Corp.’s proposed $22 billion acquisition of streaming platform Roku is moving closer to receiving approval from U.S. antitrust regulators, potentially clearing a major obstacle to a transaction that would reshape the television and digital advertising industries.
The Justice Department is considering allowing the acquisition to proceed under a consent decree that would impose legally enforceable conditions on the combined company, according to a Semafor report cited Tuesday by Yahoo Finance.
The discussions suggest regulators may be willing to resolve competition concerns without blocking the transaction. However, the terms of any agreement remain unclear, and the department could change its position before issuing a final decision, according to the report, which cited people familiar with the matter.
The potential clearance would mark a significant development for Fox, which announced its agreement to acquire Roku in June as part of a broader effort to expand its digital distribution and advertising operations.
The acquisition would combine Fox’s television news, sports and entertainment businesses with Roku’s connected-TV operating system, streaming distribution network and advertising technology.
Streaming Competition Remains a Central Concern
Regulatory scrutiny has focused partly on whether Fox could use Roku’s position in the connected-TV market to give its own programming preferential treatment over competing media companies.
According to Semafor’s reporting, competitors have raised concerns that Fox could gain an advantage in how television content is displayed, promoted and distributed through Roku devices and software.
Roku’s operating system serves as an important gateway to streaming services, giving the platform influence over how consumers discover programming and how advertisers reach television audiences.
The combination could therefore strengthen Fox’s position across both content production and distribution, an arrangement…
