Fox Corp is buying Roku in a cash-and-stock deal valued at about $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 yesterday , 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 and reduce reliance on traditional distribution.

It is Fox’s first major acquisition since CEO and Chairman Lachlan Murdoch cemented control over the media empire his father ⁠Rupert built, following a family settlement last year.

Lachlan Murdoch, according to a Reuters report yesterday, 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.”

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.

Advertising is its largest component, with revenue of $613 million in the first quarter, up 27 percent year-on-year.

Under the deal, Roku investors will receive $96 in cash and about 0.97 Fox Class A shares for each share held, valuing the offer at $160 per share. That ‌represents a ⁠33.7 percent premium to Roku’s close on Thursday, a day before publications including Reuters reported it was exploring options including a sale.

While Fox dominates cable TV with its sports lineup and top-rated Fox News, it is grappling with cord-cutting as consumers shift away from traditional TV. Rising competition spurred by industry consolidation is also a challenge.

Last week, the U.S. Justice Department’s Antitrust Division cleared Paramount Skydance Corp’s planned $110 billion acquisition of Warner Bros. Discovery , a deal that would create an industry giant with major studios ⁠and networks such as CNN and CBS.

Buying Roku would allow Fox to compete better, with the combined company set to be the third-largest player in US television by viewership.

Fox already operates the free-to-watch Tubi service and the Fox One subscription streaming service launched last year, the Reuters report added.