3 Reasons Roku Shouldn't Sell Itself to Netflix
Rumors have popped up on Wall Street in the past couple of weeks that streaming service Netflix may make a bid to acquire streaming platform Roku (NASDAQ: ROKU). The rumor was also spreading within Roku, and the company has suspended employee trading of its stock, a procedure that sometimes comes before important news is made public.
Investors will have to wait and see whether there's fire where the smoke is, but it seems plausible now that Roku's market cap has shrunk to $10 billion, a digestible price tag for Netflix. But selling out isn't always the most rewarding move over the long term. Here are three reasons why Roku should remain on its own.
Netflix's market cap is roughly seven times larger than Roku's, and the company enjoys its reputation as the streaming industry's pioneer. But Netflix's years of insisting on hewing solely to a subscription model may have caught it flatfooted.
Source Fool.com
