- Shares of Roku are up 11% due to speculation that Netflix may acquire the streaming platform.
- Netflix risks losing its focus as a content publisher if it also wants to become an advertising company.
- Roku will no longer be a neutral CTV advertising outlet if the merger takes place.
- The deal could be highly dilutive to Netflix shareholders as Netflix will need external financing and Roku isn't a profitable business.
- I see a better path for Netflix to stay focused on creating the most engaging content in the streaming space.
For further details see:
Netflix And Roku? Interesting Deal, But Unlikely To Happen