3 Reasons Comcast Isn't Buying Roku
Shares of ViacomCBS (NASDAQ: VIAC) and Roku (NASDAQ: ROKU) rose 3% and 5% respectively on Wednesday, fueled in part by buyout speculation following a Wall Street Journal story. A source close to Comcast's (NASDAQ: CMCSA) CEO Brian Roberts says that the cable and connectivity giant is scoping out the potential of a tie-up with Viacom or an acquisition of Roku.
Joining forces with ViacomCBS makes sense. It may seem like a conflict of interest for the country's leading cable provider to start playing favorites with individual media properties, but Comcast already broke that mold when it snapped up NBCUniversal more than a decade ago. Comcast's Universal Studios theme parks also have a history of working with Viacom's Nickelodeon.
A potential deal for Roku also has its merits, but it's just not as feasible. Let's go over some of the reasons why Comcast will fail if it is in fact trying to snap up the company behind fast-growing streaming platform.
Source Fool.com
