Roku buyout rumour

Apparently the reason for the price movement yesterday …

https://www.nasdaq.com/articles/roku-stock-trades-higher-tod…

Roku Stock Trades Higher Today on Google Acquisition Rumors

Shares of Roku (NASDAQ: ROKU) made some noise on Tuesday, rising 12% for the day. This came even though it was an otherwise quiet session for the company.

However, listen harder and you’ll hear the whispers of traders in the background. They’re discussing an unsubstantiated rumor: Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) wants to acquire Roku.

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Google has its own Chromecast. But I think Facebook is the best fit. Facebook can have video ads revenue if so.

True, but Chromecast doesn’t offer the same feature set. Yet. If Google acquired ROKU they could legally add that feature set in some sort of device that does both jobs. Just speculating, I have no knowledge that this is what they are planning (or that the rumors are even true).

That would likely pay-off handsomely for ROKU shareholders. Buy-outs often jack-up the price.

1poorguy

What’s Roku’s value?

It’s a neutral platform on which any video service can play, no matter traditional TV channels, Apple,Google,Amazon,etc.

When Google acquired Roku,Roku will lose some customers, such as Apple and Amazon because their competitions on many fields.

Also Anthony Wood said he doesn’t need to sell Roku.

What’s Roku’s value?

You should probably check previous, very detailed, posts about their financials.

https://discussion.fool.com/roku-q120-recap-34526659.aspx?sort=w…

I think that is the most recent one.

I have no position in ROKU, and I do have some reservations. For example, they aren’t the OS of choice in the smart TVs of the big players like Samsung and LG. They only get revenue if you sign up for a service through their device, not if you port your subscription over. Etc. Maybe Google could do it better (assuming the rumors are true)? Don’t know.

I was just commenting on the fact that a take-over usually jacks the price up for existing shareholders. Usually.

It’s a neutral platform on which any video service can play, no matter traditional TV channels, Apple,Google,Amazon,etc.

Roku goes one step further: it will offer private channels created by individuals. That is, an individual interested in a particular topic can buy/create media and then offer a channel on Roku. Interested in science fiction, DIY, sports, or whatever? You may well find a number of private channels to suit your interests. (Funding is provided by commercials and/or subscriptions. Roku, presumably, rakes off some fraction of that.) I

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