Fox's Roku Acquisition Faces Regulatory Risks

Dow Jones08-07 17:24

0922 GMT - Fox Corp.'s planned acquisition of streaming platform and hardware provider Roku faces regulator-induced delays, Bernstein analysts write. Fox agreed to buy Roku in June, in a deal worth around $25 billion. Though the analysts don't think the deal sparks any antitrust concerns, recent precedent suggests media takeovers are tricky. Regulatory hurdles slowing Paramount's bid to acquire Warner Bros. Discovery suggest "transaction timing can be unpredictable even when the underlying antitrust arguments appear relatively weak," the analysts say. If the deal does complete, "Roku could create a more compelling long-term growth narrative" for Fox, they say. Fox shares slide 6.6% premarket. Fox Corp. and Wall Street Journal parent News Corp share common ownership.

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