Here's What Fox Buying Roku Means for Netflix Investors
Is Netflix finally ready to become a major player in the merger and acquisition market? Learn how the company is balancing its aggressive growth ambitions with financial caution.
Here's What Fox Buying Roku Means for Netflix Investors
Overview
It's a bit weird to see Roku (NASDAQ: ROKU) accepting a buyout offer from Fox (NASDAQ: FOX) (NASDAQ: FOXA).
If you know Roku's history, you're watching a former Netflix (NASDAQ: NFLX) subsidiary shack up with a different media company and video-streaming veteran. The irony grows richer when you recall that Netflix spun out its streaming hardware operations to avoid regulatory scrutiny. Bundling Roku with a market-leading content provider like Netflix might have raised antitrust concerns with the Department of Justice and the Federal Trade Commission.
Details
Yet Roku has taken Fox's $22 billion bid and expects smooth sailing through the regulatory reviews. Rumor has it that Fox won a bidding war against Netflix. Are media mergers different today, or is it just Netflix's habit to back down from expensive buyout ideas?
Source
Originally published at www.fool.com.
