Fox confirmed Monday that it is acquiring streaming company Roku in a stock and cash deal valued at around $22 billion, one of the largest media acquisitions in years and a clear sign of where the TV industry is placing its bets. Fox said the deal reflects two forces reshaping how people watch video: the enduring pull of live sports and news, and the relentless growth of streaming.

Fox says the combined company will become the third-largest television business in the United States by viewership. The deal merges Fox’s news and sports channels and its free ad-supported streaming service Tubi, with Roku’s connected TV platform — the software that powers many of the smart TVs and streaming devices people already have in their living rooms.

Together, Fox says, the combined company will have reach across both traditional TV and streaming — a combination increasingly seen as essential as audiences split their time between live broadcasts and on-demand platforms.

The deal gives Fox direct access to Roku’s audience of 100 million households, which Fox says will help the company target ads more effectively and rely less on traditional delivery. Fox also says the acquisition gives it a stronger foothold in connected TV — the fast-growing market for streaming ads and subscriptions, often referred to in the industry as “CTV.”

Fox CEO Lachlan Murdoch called the acquisition a “defining” moment for the company.

“This combination will transform the scope of our company into high-growth verticals and yield a step change in our overall growth profile,” Lachlan said in a press release. “Roku pioneered streaming TV and scaled it into a leading CTV platform. Together, we intend to lead its next chapter.”

The move continues a wave of consolidation in media as traditional broadcasters race to build scale in streaming. Fox acquired Tubi for $440 million in 2020 at the height of competition across the live streaming industry. Last year, the company launched Fox One, its direct-to-consumer streaming service.

“I’m incredibly proud of what our team has built, and the combination with Fox is an extraordinary opportunity to accelerate our vision, scale faster, and innovate more aggressively for viewers, partners, and advertisers,” said Roku founder and CEO Anthony Wood. “I couldn’t be more excited about what we’ll accomplish together.”

The deal has been approved by the boards of directors of both companies and is expected to close in the first half of 2027. Fox says it obtained a $12 billion loan for the acquisition.