A match made in TV heaven?

Employees at Roku have been discussing a potential acquisition by Netflix, Business Insider reported yesterday, citing multiple sources within the company.

📺 A deeper dive... The internal chatter at Roku reportedly began a few weeks ago, when the company abruptly closed its stock trading window for all employees at a time when it's normally open.

• Before yesterday, the TV hardware giant’s shares had fallen ~80% since late July amidst weaker demand for video streaming compared to the early days of the pandemic.
• Since tech companies typically pay employees with a combination of salary and stock, the price collapse has made it nigh impossible for Roku to compete with rivals Apple, Amazon, Google, and Samsung for talent in a tight labor market.
• Insider reports that Netflix is especially interested in Roku’s video-advertising platform, which generated $647 million in revenue last quarter. Netflix previously announced plans to introduce its first ad-supported pricing tier by the end of this year.

✋ Yes, but… There could be other reasons for Roku to halt employee trading besides a pending acquisition. 

• Companies typically close trading windows before releasing any information they think would affect their share price to avoid potential insider trading.

🧠 In the know: 38% of US smart TVs sold in 2020 were Roku models, tops among all manufacturers.