Fox Corp is buying Roku in a cash-and-stock deal valued at about US$22-billion in a bet that pairing its sports and news programming with a top TV streaming platform will strengthen its position as audiences shift online.

The deal, announced on Monday, gives the cable TV-reliant Fox direct access to Roku’s large installed base of more than 100 million streaming households, helping it better sell targeted ads and reduce reliance on traditional distribution.

Fox will acquire Roku for $160/share, representing a premium of 11.4% to Roku’s last close. Shares of Fox were down 8% in pre-market trade, while Roku’s shares were halted.

Roku was one of the first companies to bring streaming platforms like Netflix and YouTube to television through connected devices and smart TVs. Its business is largely driven by advertising and subscription revenue from streaming apps on its platform. Advertising is the largest component, with revenue of $613-million in the first quarter, up 27% year on year.

Fox already operates Tubi, while Roku runs The Roku Channel, and a combination of the two platforms could create a clear leader in streaming, with a meaningful share of total TV viewing, JPMorgan analysts said.

The combined company will become the third-largest player in US television by share of viewing, the companies said. The deal is expected to close in the first half of next year.