streaming giant Netflix A report has indicated that rival platform, which is struggling to retain paid customers for a long time, may acquire Roku. According to an Insider report citing sources, Roku employees have long been speculating about the company’s sale to Netflix. The purchase will reportedly cost around $13 billion (based on its current valuation) and give Netflix a foothold in the hardware market.
Both Netflix and Roku did not comment on the report. The news comes after American telecommunications conglomerate Comcast acquired Roku last year. Streaming companies saw their stocks rise against reports last week.
Roku is best known for its streaming media devices and is now a software and services company. It offers Roku Channels which is a free, ad-based streaming offering. Netflix saw its stock fall 20 percent after it reported a loss of 2 million paid subscribers in the first quarter of 2022, its first subscriber loss in more than a decade. In addition, it estimates a global payments customer loss of 20 lakh for April. -June quarter (Q2).
Netflix is rapidly losing long-term subscribers. According to a survey report by The Information, new data shows people who have been Netflix subscribers for more than three years canceled 13 percent in the first quarter of this year.