<body><p>STORY: Media giant Fox announced that it's buying Roku for $22 billion, betting that the streaming platform will strengthen its advertising business and expand its online reach.</p><p>:: Roku</p><p>The deal gives the parent company of Fox News access to Roku's more than 100 million households, potentially helping the legacy cable and broadcast company better compete for eyeballs, target its ads and reduce reliance on traditional distribution.</p><p>:: Archive</p><p>It's Fox's first major acquisition since CEO and Chairman Lachlan Murdoch cemented control over the media empire his father Rupert Murdoch built, following a family settlement last year.</p><p>The younger Murdoch called the Roku deal a "defining moment" for Fox that brings together what he called "the most valuable live content portfolio" with the top streaming platform.</p><p>The cash-and-stock deal, however, sent shares of Fox as much as over 19% lower on Monday, likely on concerns about stock dilution.</p><p>:: Archive</p><p>Shares of Roku fell more than 2.5% to just over $140 a share and were trading below the offer price of $160.</p><p>:: Roku</p><p>Roku was one of the first companies to bring streaming services like Netflix and YouTube to TV, and gets its revenue largely through ad and subscription revenue from the apps on its platform.</p><p>:: Tubi</p><p>The company also operates the free Roku Channel, which will be kept separate from Fox's ad-supported streaming platform, Tubi.</p><p>Fox and Roku have been intertwined before. In 2020, Fox funded its $440 million acquisition of Tubi by selling a 5% stake in Roku that it had held since 2013.</p></body>
