2 hrs ago
Fox Says Roku Acquisition Remains On Track Despite DOJ Scrutiny
Fox Corporation plans to buy Roku for $22 billion.
The U.S. Department of Justice has asked the companies for more information about the deal.
Fox executive John Nallen said this request was expected and does not change the planned closing date.
The companies still expect the deal to close in the first half of 2027.
Nallen said Roku is beginning to grow faster.
He also said Fox’s Tubi service is now profitable.
Fox says the combined company will not have too much debt.
Fox’s Fox One streaming service is gaining subscribers faster than expected.
Research showed that 2.8 million people signed up for Fox One during last summer’s World Cup broadcasts.
Fox Corporation’s $22 billion acquisition of Roku remains on track to close in the first half of 2027.
The U.S. Department of Justice requested additional information, which Fox executive John Nallen called “entirely expected.”
Nallen said Roku’s accelerating growth and Tubi’s profitability could make the transaction “a superb transaction.”
Fox expects the combined company to have leverage of 2.8 times trailing earnings and plans a $1 billion to $1.5 billion share buyback.
Fox One subscriber growth is above expectations, with a five-year target of 3 million to 5 million subscribers.
- Who
- Fox Corporation, Roku, Fox executive John Nallen, and the U.S. Department of Justice.
- What
- Fox Corporation’s planned $22 billion acquisition of Roku is undergoing additional regulatory review but remains on track.
- Where
- The update was discussed at the Goldman Sachs Communacopia conference in San Francisco.
- When
- The regulatory request was disclosed Wednesday; Fox expects the deal to close in the first half of 2027.
- Why
- Fox says Roku’s growth and Tubi’s profitability could strengthen the combined company, while regulators are seeking additional information before the transaction proceeds.
Fox’s Confidence
Regulatory Uncertainty
Deal timeline
Fox’s Confidence
John Nallen said the additional information request was entirely expected and that the first-half 2027 closing estimate remains intact.
Regulatory Uncertainty
The deal still requires regulatory review, and the additional request introduces another step before completion.
Business rationale
Fox’s Confidence
Fox says Roku’s accelerating growth and Tubi’s profitability could make the transaction highly beneficial.
Regulatory Uncertainty
The companies’ projected benefits remain subject to regulatory approval and successful integration.
Financial impact
Fox’s Confidence
Nallen said the combined company will not carry excess debt, with rapid deleveraging and a continuing share buyback planned.
Regulatory Uncertainty
The acquisition will add substantial financial commitments, making leverage and debt reduction important issues for investors.
Key facts
- Deal value
- $22 billion
- Expected closing
- First half of 2027
- Regulatory development
- The U.S. Department of Justice requested additional information.
- Projected leverage
- 2.8 times trailing earnings
- Planned share buyback
- Approximately $1 billion to $1.5 billion
- Fox One subscriber target
- 3 million to 5 million subscribers within five years of launch
- Fox One sign-ups
- Research firm Antenna reported 2.8 million sign-ups during last summer’s World Cup broadcasts.
Quotes
John Nallen
Fox Corp. President and Chief Operating Officer
“It’s going to end up as a superb transaction.”
deadline.com
“entirely expected”
deadline.com
Sources
Related news
Zuckerberg Challenges Proposed FINRA-Style AI Watchdog
Paramount may leave California if merger misses October deadline
George Clooney Wins Golden Lion, Questions Paramount-Warner Bros Merger
Newsom Favors Paramount-Warner Settlement If It Protects California Jobs
California Cancels Paramount Settlement Meeting Over Warner Bros Merger
Netflix Tests Adding Peacock and Fox One Content
Spain Wins World Cup Final
Streaming Prices Soar as Services Add Sports, Bundles
