Sign up to receive 5 free days of our daily summary for tech news.


Why Roku Acquisition Could Make Sense for Disney or Walmart

A few years ago, when Roku was still a private company with uncertain prospects, it would occasionally get acquisition offers from bigger companies. CEO Anthony Wood was never interested. Even when the streaming device maker was worth around $1 billion, he argued that one day he expected it to be worth 10 times that much, according to a person familiar with his thinking. Today, with Roku’s market capitalization now above $7 billion, Mr. Wood is looking smart.

Since going public in September 2017, Roku stock has more than tripled to nearly $65 a share. It’s a much better performance than other, more heralded tech startups to go public that year, such as Snap and Blue Apron (both trading well below their IPO price). For Roku shareholders today, though, the question is how much higher can the stock go—or whether now is the time for Mr. Wood to take the money and run by selling. Possible buyers could be Disney, AT&T or Walmart. But it’s tough to see any of these companies being willing to pay more than what Roku is currently trading at.

What Is The Information?

Notes c5deeda06ab4ba3bb64e208f234bfd828cdb7031f4b8d9ef5ffe24616d188b97

Exclusive Articles

We broke it first. Receive original reporting you won't read anywhere else from the largest newsroom in tech.

Notebook 6c83b3311db49a8adebea2e7fe2364564e90295556b8e983aea7986068e1a47c

Daily news analysis

Every weeknight, we'll send you our reporters’ views on the day’s top tech news—distilled into one email.

Conference calls 31d2645b356d3bb7470146f8d53ea066d45f6cb5d19dd7b6b299b046c8fac7c0

Conference calls

Get access to our reporters and other top executives with monthly deep-dive calls into topics like startups and autonomous vehicles.

Events ed23353632f8b00a54b6b229ac78d6aa5e78755fa35c00eb4d0e87d72c711c4f

Special Events

For no extra fee, get access to more than a dozen events yearly, from intimate dinners to larger gatherings with marquee speakers.

What else is included in my subscription?

Become a contributor

Share your views and find other subscribers by completing your profile. You’ll be listed in our contributor directory.

Slack community

Discuss topics and current events with our subscriber-only Slack group and share news about your company with other subscribers.

Annual Subscriber only benefits:

Org Charts

Access the only collection of tech company org charts. Our expanding database includes companies like Amazon, Snap, and Uber.

Crypto Newsletter

Our experts investigate the latest in the crypto world to keep you in-the-know about the movements of digital currencies.

Stay up to date on Silicon Valley

Sign up for Jessica Lessin’s (The Information’s CEO & Founder) free Saturday newsletter and also receive a complimentary week of our daily afternoon tech commentary email.

Already a subscriber? Log in here