Roku, Inc.: Initial Public Offering Harvard Case Solution & Analysis

Roku, Inc.: Initial Public Offering Case Study Solution


The overall study considers a process of (Portfolio Capital Management) that look for the investment and need to evaluate the initial public offering inside the “Roku Inc.” corporation. The working procedure inside the information technology services of the organization Roku Inc. presents itself as highest as others present and spread its services in most of the regions of the world(Xu, 2019). After one year of spending on business practices,the organization wants to inspect and evaluate its overall drive and business practices. Roku Inc. filed its first public offering and offered the shares having a range between a high lower to high-level range in the year 2017 about ($12 to $14). Portfolio management analyzes the overall advantages and disadvantages of the investment in Roku Inc.'s initial public offering to get better results and returns.

(Q: 1) Advantages and Disadvantages of Roku Going Public

After presenting Roku Inc. itself in the initial public offering consider various advantages and disadvantages because of the changing market conditions like shifting technology from previous platforms to new platforms and after filing the (IPO) different investors look to evaluate the market condition as compared to the Roku Inc. shares condition that ultimately changes the practices of the organization.

Advantages of Going Public

The first benefit or advantage that getsfrom the changing trend and shift in the market focus from subscription and pay television is completely changed now to the redesigned content delivery landscape(Xu, 2019). This factor ultimately help Roku Inc. to position itself in this shift and at the time it went for (IPO) there is a (37%) of the overall households in the U.S. with broadband access are now using the Roku Inc. platform to get content access. The second advantage consider for Roku Inc. when it wenttothe public was that the organization offered different benefits to the (OTT) content providers that ultimately help Roku to increase its public offering.

Disadvantages of Going Public

Wu's investors feel mixed feelings about the investment in Roku Inc. because there is a disadvantage raised that is present by the different articles, which consider that Roku Inc. has low capabilities in different platforms that easily motivate the competitors to create a duplicate of the Roku strategy(Varmarken, 2020). The factor which arose from the IPO, presents major uncertainty in the overall market that needshigh consideration and improvement in the year 2016 but the performance for the strictlyobservedone present wasthe alarming, which ultimately lead the companies to offer shares at the discounted prices which is considered as a major disadvantage for the Roku Inc. to going public in that time.

(Q: 1) Advantages and Disadvantages of Going Public at the Time it chose

Advantages of Going Public at the Time it chose

The most important and major advantage that the organization considers is that its top management can understand and identify the short-term challenges for Roku Inc. and it is easy for them to resolve them. It helps the management of the organization to put more focus on growth and present new long-term strategies that help the organization to maintain its stability in the market. It is also helpful for the organization to increase its overall revenue by increasing the customers and organization performance. Roku Inc. getsan advantage from the loyal investor’s side for the outsourcing that provides additional benefits.

Disadvantages of Going Public at the Time it chose

Few disadvantagesoccurred at the time chosen for going public that it increase the level of injustice between the investors because there are different investors from differentlimited classes. This type of conflict also affects badly the decision-making process, whichaffects the growth of the organization in negative terms..................

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