Why Netflix Buying Roku Helps Amazon, Apple (and Maybe Google)

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A possible deal between Netflix (NFLX) – Get Netflix Inc. Report and Roku (ROKU) – Get Roku Inc. Report despatched shares of each corporations increased. That’s probably as a result of traders see the synergies between the 2 corporations — Netflix makes content material and Roku distributes it — however this acquisition would truly rob Roku of its greatest benefit.

Currently, Roku doesn’t produce content material in a significant method. It has plans to try this in a small method, but it surely’s not going to provide content material that competes with the numerous corporations whose tv reveals and flicks it distributes.

Source: www.thestreet.com