Investing.com -- Newsmax Inc (NYSE:NMAX) Chief Executive Chris Ruddy is pressing the Justice Department to block Fox Corp's (NASDAQ:FOX) proposed $22 billion acquisition of Roku Inc (NASDAQ:ROKU), leveraging White House access to escalate a regulatory battle against his larger rival.
According to communications viewed by Semafor and individuals familiar with the matter, federal antitrust enforcers expanded their investigation into the deal's impact on streaming competition following outreach from Ruddy and his allies. The pressure campaign comes as Newsmax continues to pursue refiled antitrust litigation against Fox, alleging the network used exclusionary distribution deals to suppress smaller conservative competitors on streaming platforms.
While Fox has rejected the allegations as an attempt by Newsmax to litigate its way out of market failures, the widening federal inquiry introduces regulatory scrutiny that could delay the transaction. The strategy highlights Ruddy's established playbook of using political relationships and regulatory challenges to disrupt far larger industry peers, even as Fox maintains that the claims lack legal merit.
Though previous attempts to derail major media transactions, including the Nexstar-Tegna combination, ultimately fell short, Ruddy's access to President Donald Trump ensures his challenges command serious attention from corporate legal teams. For Fox, the expanded DOJ review creates an unexpected hurdle in its strategy to secure control over Roku's dominant streaming architecture.
Original Article
Newsmax pressures DOJ to block Fox's $22B Roku deal, Semafor reports
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