Roku Founder Anthony Wood Originally Built The Device Inside Netflix During The Early 2000s Streaming Transition Before The Company Spun It Off In 2008 Over Fears It Would Alienate Hardware Partners Like Apple And Samsung, Making This Failed Bid An Attempt To Buy Back The Very Ecosystem Netflix Once Created
According to Yahoo Finance/Investing.com, Netflix shares fell 3.5% Tuesday following reports that the streaming pioneer was outbid in a major consolidation play for Roku, losing to Fox Corp’s definitive $22 billion agreement. A Semafor report indicated Netflix aggressively pursued Roku but was ultimately trumped by Fox’s winning cash-and-stock offer.
Sources cited two key factors in Fox’s victory. Regulators would have scrutinised a Netflix-Roku merger heavily, since Netflix owning the hardware hosting rival streaming apps like Disney+ and Peacock raised antitrust concerns. Fox, having pivoted toward live sports and its free ad-supported Tubi service, posed less direct competitive risk and pledged to keep Roku an open platform.
This marks Netflix’s second failed acquisition attempt in recent quarters, following an unsuccessful run at Warner Bros. Discovery. Co-CEO Ted Sarandos told an April earnings call the Warner Bros. pursuit helped build the company’s deal execution capabilities. Netflix is now reportedly among several media giants circling Lionsgate Studios, though it has not submitted a formal offer. Spokespeople for Roku, Netflix and Lionsgate declined to comment.
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