Inside Roku, Talk is Heating Up About an Acquisition By Netflix

An anonymous reader shares a report: At Roku, a video-streaming platform operator that's suffered a punishing stock plunge, employees are buzzing about the possibility of an acquisition -- and their talk and hopes are pinned on Netflix. Employees at Roku have been discussing the possibility of a Netflix acquisition in recent weeks, according to people familiar with the matter. The chatter comes as Roku's stock has dropped about 80% since late July on weaker demand for video streaming and lower set-top-box sales. Roku competes with Apple, Amazon, Google, and Samsung in the market for streaming devices, and some of those industry titans are battling with the smaller company for lucrative video-ad dollars. The collapse in Roku's stock made it hard to compete with its larger tech rivals on pay in a tight labor market. The result has been a staggering increase in equity grants to employees, leaving Roku well underwater on stock-based compensation. Roku has been seen as an acquisition target before -- including last year, when, according to The Wall Street Journal, Comcast CEO Brian Roberts considered purchasing the company. In January, the departure of a top Roku executive stoked questions about the company's future.

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