Fox Strikes $22 Billion Deal For Roku To Fuel Streaming Push

LOADINGERROR LOADINGJune 15 (Reuters) - Fox Corp FOXA.O is buying Roku ROKU.O in a cash-and-stock deal valued at about $22 billion in a bet that the top TV streaming platform will strengthen its advertising business and expand online reach for its sports and news content.The deal, announced on Monday, gives Fox access to the more than 100 million households using Roku’s streaming platform, potentially helping the cable TV-reliant media company better target ads, take on competition and reduce reliance on traditional distribution.Advertisement It is 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.CEO Murdoch called the Roku deal a “defining moment” for Fox that brings “together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it.”Lachlan Murdoch called the Roku deal a "defining moment" for Fox that brings "together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it."Evan Agostini/Invision/APEvan Agostini/Invision/APAdvertisement Fox shares fell nearly 17% in early trading, likely on concerns about stock dilution from the deal.Roku ticked down 2.5% to $140.1 and was trading below the offer price of $160 per share.One of the first companies to bring streaming platforms like Netflix and YouTube to television through connected devices and smart TVs, Roku’s business is largely driven by advertising and subscription revenue from streaming apps on its platform.The company also operates the free-to-watch Roku Channel, which will be kept separate from Fox’s ad-supported streaming platform, Tubi.Advertisement Roku’s purpose built operating system helps keep hardware manufacturing costs low, giving it an edge in the industry as memory...