Roku and Netflix may be in acquisition talks

According to a new report from interested in tradeRoku and Netflix may be in talks to see the streaming giant acquire the Roku business.

You might buy a Netflix Roku

Citing sources familiar with the company, it appears that Roku employees have closed their trading window to sell Roku shares. Usually this happens when information is released that will affect the company’s stock to prevent insider trading. Since July 2021, Roku’s stock has fallen nearly 80% due to weak demand for streaming devices

Now, the prospect of Netflix acquiring Roku, which could be realized for about $13 billion based on the company’s current valuation, is an “inside Roku talking hub.” This comes after Roku was the target of an acquisition last year, with Comcast considering buying the platform.

Netflix and Roku have yet to comment on the rumors at this point, but there are plenty of reasons why this acquisition makes sense. Currently, Netflix is ‚Äč‚Äčexperiencing a decline in shares as the company faces stiff competition from Disney, HBO Max and other fast-growing services. Recently, Netflix confirmed its plans to adopt a cheaper, ad-supported plan, and a whole new ground for the company. With Roku’s help, Netflix would have an immediate ad market share that it completely lacks today.

In the past, Netflix CEO Reed Hastings said there was “no added value for us to do a device,” but with today’s climate, his view has apparently changed to “nothing is off the table.”

At this point, nothing has been set in stone, but it certainly looks like the stars are in line with a deal like this.

9to5Google’s Take

In today’s streaming market, Netflix’s acquisition of Roku makes a lot of sense. Roku has been said to have been looking for a buyer for years, and with the two companies at tricky spots due to increased competition, they could boost each other in some big ways.

Looking at the bigger picture, this could Be great news for Google TV.

For years, Roku was a popular choice because it wasn’t tied to any specific streaming service or market. Roku had no interest in what you watched, just in giving you the best way to watch that content. But under the leadership of Netflix, it is quite certain that Roku will greatly improve its interface for Netflix.

In a future like this, Google TV will be the only platform with no major streaming service tied to it, especially since Google has lessened its focus on its own movie store. Fire TV will have Prime Video, Apple TV will have TV+, and Roku will have Netflix. Google, of course, owns both YouTube and YouTube TV, but neither of these services directly rival the likes of Netflix and other major streaming services.

This may also lead to Netflix even more hostile to other platforms than it is today. Netflix already blocks its own original content from the Google TV watch list, and has similar behavior on Apple TV.

Will it mean an explosion in Google TV usage? Probably not, but it will make the platform more popular among enthusiasts or those who are not fans of the 24/7 Netflix experience.

Netflix’s purchase of Roku is sure to bring about an interesting market shift.

More on Google TV and Roku:

FTC: We use affiliate links to earn income. more.


Check out 9to5Google on YouTube for more news:

Leave a Comment