Fox Corp. President and Chief Operating Officer John Nallen said the company’s $22 billion acquisition of Roku is on track to close despite a new request for information from regulators.
Speaking at the Goldman Sachs Communacopia conference in San Francisco on Wednesday, Nallen mentioned Fox’s regulatory filing earlier in the day noting the U.S. Department of Justice‘s had asked for additional information.
Nallen called that request “entirely expected,” echoing language in the filing that the merging companies intend to “work co-operatively” with regulators. He said the previous estimate that the transaction will close in the first half of 2027 remains intact.
While the exec has plenty of reason to publicly project confidence, his characterization is well-founded in regulatory procedural norms. Even so, there is an unpredictable element now in the mix on any corporate transaction: President Trump.
Unmentioned during the conference session was speculation about potential backlash from Trump over last week’s abrupt decision by Fox News to drop longtime host Maria Bartiromo. “Her fans, of which there are many, will not be happy,” Trump posted on social media. Bartiromo has hired well-established entertainment Bryan Freedman, planning to fight Fox over her terms of her dismissal.
Given Trump’s capricious handling of tariffs and FCC scrutiny of broadcast networks whose programming he doesn’t like, some observers have wondered if the president could stymie the Roku deal out of spite. Trump and Fox chairman emeritus Rupert Murdoch, still a key figure in determining the direction of Fox News, have had many bumpy periods in their longtime relationship. Murdoch did not endorse Trump in 2016 and also broke with him after on-air talent including Bartiromo created legal liability by airing lies about the validity of the 2020 election.
Nallen said Roku is at an “inflection point,” starting to accelerate growth, while Fox streaming platform Tubi has recently turned profitable while revenue keeps surging. Given that combination of entities on the upswing, Nallen said, “It’s going to end up as a superb transaction.”
Probed about the financials of the deal, Nallen said it won’t saddle the combined company with excess debt.
He said Fox expects to have a leverage ratio of 2.8 times trailing earnings and, with revenue growing significantly at both companies, “the de-leveraging that occurs is rapid.” Plans for a share buyback in the range of $1 billion to $1.5 billion will proceed “unabated,” a further sign of financial strength, Nallen added. Public companies often have to balance paying down debt with buying back their own stock, with the latter move often helping boost investor confidence.
The session touched on a number of other topics, including sports rights, talks with distributors and the first year of streaming flagship Fox One.
Asked about progress with Fox One since its launch last August, Nallen said the company has projected reaching between 3 million and 5 million subscribers in the first five years after launch. While Fox execs are stopping short of revising that forecast, Nallen said initial subscriber growth is “above expectations.”
Data from research firm Antenna showed last summer’s blockbuster World Cup broadcasts helped spur 2.8 million sign-ups to Fox One.
