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.
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.