The market touched a record high this morning, but we are now observing a steep sell-off.
We highlighted Roku a few weeks ago, today we are back highlighting them again because they just announced they are in talks to acquire Quibi’s content.
Quibi was a failed start-up with the idea of creating content that is 10-15 minutes long, which would be useful for when you are bored in line or on the way to work. They really missed the mark, however. There are multiple things they screwed up on and overall, the founders decided to shut it down.
Roku’s decision to potential acquire Quibi’s long list of content would be huge. It would make Roku a dynamic competition against the big-name streamers, but while also selling their Roku Smart TVs.
Roku’s shares opened higher this morning but are following along with the sell-off.. now down 3%.
Update (1/8/21): Roku has finalized a deal with Quibi securing their library of shows for less than $100 mm. Shares of Roku went flying.