Fox Corp. has agreed to buy the streaming pioneer Roku in a cash-and-stock deal valued at approximately $22 billion, including debt.

The deal will give Fox access to more than 100 million global households, along with the Roku channel and its first-party data. Fox oversees a massive sports, news and entertainment network, as well as Tubi, which it acquired in 2020.

Roku founder Anthony Wood had initially worked within Netflix in the early 2000s as that company attempted to make the seismic shift from renting DVDs, to streaming.

Roku was spun off by Netflix, however, and the company released its first set-top box in 2008.

Wood, who is Roku’s chairman and CEO, said his motivation in pursuing the technology was his desire to record and play his favorite show, “Star Trek.”

The companies said Monday that Roku will continue to be run as an open, partner-friendly platform. Fox and Roku said that the combined company will become the third-largest player in U.S. television by share of viewing.

Fox Corp. CEO Lachlan Murdoch said in a statement that combining the businesses will bring together Fox’s live news and sports content with a streaming platform with large viewership. It will also give Fox more exposure to advertising and streaming subscriptions.

“The combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers,” Wood said in prepared remarks.

Wood will have an ongoing role at the company and will join the Fox board of directors after the transaction closes.

Fox will pay $96 in cash and 0.9693 shares of its Class A common stock for each Roku Class A and Class B share outstanding. The transaction is valued at $160 per Roku share.

Existing Fox shareholders are expected to own approximately 73% of the combined company and Roku shareholders will own about 27%, once the deal closes.

The deal is expected to close in the first half of next year. It still needs approval from Fox and Roku shareholders and also regulatory approval.

Fox’s stock declined before the market open, while shares of Roku rose slightly.

Michelle Chapman, The Associated Press