In this video, I will be talking about the rumored Netflix (NFLX -0.31%) acquisition of Roku (ROKU 4.10%), as well as the pros and cons of such a move for shareholders of both companies.
- Netflix is going into the advertising business and Roku has a growing ads business.
- The two companies know each other very well since Roku was spun off over a decade ago.
- The deal might hurt Roku's Switzerland status when it comes to streaming.
- The trading window for Roku employees has closed abruptly, which might indicate that these are more than just rumors.
- As a Roku shareholder, this deal makes more sense for Netflix, especially with Roku's stock price down 80% and it willing to offer an ad-supported tier to its subscribers.
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*Stock prices used were the closing prices of June 7, 2022. The video was published on June 8, 2022.
