Business Insider says that the streaming giant, Netflix, is in the process of analyzing whether it is feasible to acquire one of the most famous companies dedicated to the conversion and software of smart TVs in the world: Roku.
This report indicates that the employees of the Roku company are “excited” about the possibility of acquiring the Netflix and it is not for less, in recent months the shares of the firm specialized in software for screens have fallen precipitously, to reach 80% less of its value compared to the month of July 2021. This has to do with the fact that new operating systems have emerged and that more and more TV manufacturers choose to place their own interface instead of the third one, as Roku operated.
Themain reason why Netflix would be considering acquiring Roku has to do with the advertising that owns the streaming device, which reported revenue to Roku for up to 647 million in the first quarter of 2022, which represents up to seven times more than it generates in terms of sales of streaming devices.
Inroku, workers were prohibited from selling shares of the firm, which raises suspicions since it is a process that usually can be carried out without any problem, even if an advertisement considered relevant in the company is at the door.
According to analysts, it is a good time for Netflix to venture to buy Roku, both companies are not having a good time and in the case of the streaming platform it could be that the acquisition is a revulsive before its loss of subscribers and for the firm of transmitters and software this could mean “a second air”. However, this would be subject to Netflix’s economics and antitrust regulations.
Roku founder and CEO Anthony Wood was at Netflix in the 2000s and even tried to convince Netflix co-founder Reed Hastings to create a streaming device, however, Hastings didn’t consider it a profitable business. Despite the success that Roku has had, there are statements from 2014 in which Reed Hastings again said that he was “not interested” in selling streaming devices.