Ag13 said:
Apologies if this article was discussed yesterday but I am having trouble comprehending why a Comcast acquisition of Roku makes sense for either side.
https://www.wsj.com/articles/comcasts-ceo-built-a-cable-giant-can-he-build-a-streaming-giant-11624473722
I haven't run the numbers, so please know I'm only speaking in generalities and I may mention things you already know, for the sake of others that don't.
When a deal is announced, or considered, analysts and bankers talk in terms of it being accretive (adding overall, value) or dilutive (taking away overall value). Simply put, does 1+1=3 or 1.5?
With more folks moving to streaming, an internet company could try to capture both sides of the home entertainment industry. AT&T tried that with DirecTv but failedand are now selling the latter. Perhaps Comcast feels like it has better prospects since they are an internet provider already and have a "free" box ala Apple TV they give to their internet only customers.
And then there is the unspoken reason why deals are made. Cash out a startup that is a legitimate threat by acquiring them and then put them out to pasture where they can cause no more mischief after taking whatever of value they have.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.