$22B ROKU DEAL DRAWS A DOJ INFORMATION REQUEST

🚨 $22 billion. That is what Fox is paying for Roku, and the Justice Department has now asked for more information about it.

Fox disclosed the request in a regulatory filing. Hours later, COO John Nallen was on stage at the Goldman Sachs Communacopia conference in San Francisco calling the scrutiny "entirely expected," Deadline reports.

The timeline has not moved. Fox still expects the transaction to close in the first half of 2027, and says both sides intend to work co-operatively with regulators.

Then the balance sheet. Nallen said the combined company would carry leverage of 2.8 times trailing earnings, and that revenue growth at both businesses means the de-leveraging is rapid. A share buyback of $1 billion to $1.5 billion proceeds "unabated." Companies usually choose between paying down debt and buying back stock. Fox is signalling it does not have to.

Nallen described Roku as being at an "inflection point" and said Fox's free streamer Tubi has turned profitable with revenue still climbing. His verdict: "It's going to end up as a superb transaction."

On Fox One, launched last August, the company has projected 3 million to 5 million subscribers in the first five years. Execs are not revising that yet, but Nallen said early growth is above expectations. Research firm Antenna found last summer's World Cup coverage drove 2.8 million sign-ups.

📈 A routine regulatory step, or the first friction on the biggest media deal on the table?

Does Fox get this deal closed?

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