Ampere Analysis: Netflix Acquisition of Roku Would Be Expensive, But Could Add Synergies – Media Play News
Summary
A much-speculated possible acquisition of Roku by Netflix continues to polarize some Wall Street analysts, with LightShed Partner’ Rich Greenfield calling the idea “absurd,” while others ponder the cost-saving synergies. “While a large-scale acquisition would add significantly to this [debt], with Netflix already planning to launch an ad-supported tier, a purchase of Roku would bring benefits in multiple areas of the business,” Holleran wrote. Specifically, the analyst says Roku has a content catalog of about 14,500 movies and TV shows, compared to about 7,300 largely original titles at Netflix. Ampere says Netflix could see hundreds millions of dollars annually in the licensing and sales of Roku operating software and hardware. “Ultimately, if Netflix wants to offer a viable ad-supported tier without building a new platform from scratch, it will either need to partner with (or acquire) a company with expertise, scale and traction in the space.