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Netflix wades into the M&A game
Semafor • • business
Key Points:
- Netflix has shown increased interest in large acquisitions, deviating from its traditional growth strategy focused on building rather than buying.
- The company engaged in preliminary talks and due diligence for a potential acquisition of Roku but ultimately decided not to pursue a deal.
- Netflix did not submit a formal bid for Roku, contrary to some speculation, and also refrained from making a formal offer for Lionsgate Studios.
- A potential Netflix-Roku merger faced significant antitrust challenges due to Netflix's role as a content producer and competitor on Roku's platform, complicating the deal compared to Fox's $22 billion offer.
- Netflix maintains a disciplined approach to mergers and acquisitions, as seen in its recent decisions regarding Warner Bros. Discovery and Roku.
