You are an analyst who works for Michelle Wu in the Emerging Growth Strategies group of...

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You are an analyst who works for Michelle Wu in the Emerging Growth Strategies group of Portland Capital Management. After attending the Roku-sponsored event at the San Francisco Hotel, Michelle stopped by your office and asked you to evaluate the Roku opportunity. Specifically, she wants your recommendation regarding whether she should invest in Roku assuming an offer price of $14 per share. As you begin the analysis, you realize that, at a minimum, you should address the following questions: 1) What are the major benefits and challenges to Roku from its planned shift to a platform -based revenue model? What are the upside and downside scenarios? 2) What are the potential advantages and disadvantages of the dual class equity structure? Does that structure, or the number of shares being sold by insiders in the IPO, cause any governance concerns? 3) Given the above and the information at hand, what is your best estimate of the market price per share when Roku goes public (i.e., the closing price on the first day of trading)? Do you expect any specific price changes over the first few months of trading? On her way out of your office, Jennifer asked you to provide your recommendations in the form of a short report that she can share with her boss and other portfolio managers in the Emerging Growth Strategies group. You are an analyst who works for Michelle Wu in the Emerging Growth Strategies group of Portland Capital Management. After attending the Roku-sponsored event at the San Francisco Hotel, Michelle stopped by your office and asked you to evaluate the Roku opportunity. Specifically, she wants your recommendation regarding whether she should invest in Roku assuming an offer price of $14 per share. As you begin the analysis, you realize that, at a minimum, you should address the following questions: 1) What are the major benefits and challenges to Roku from its planned shift to a platform -based revenue model? What are the upside and downside scenarios? 2) What are the potential advantages and disadvantages of the dual class equity structure? Does that structure, or the number of shares being sold by insiders in the IPO, cause any governance concerns? 3) Given the above and the information at hand, what is your best estimate of the market price per share when Roku goes public (i.e., the closing price on the first day of trading)? Do you expect any specific price changes over the first few months of trading? On her way out of your office, Jennifer asked you to provide your recommendations in the form of a short report that she can share with her boss and other portfolio managers in the Emerging Growth Strategies group.

Answer rating: 100% (QA)

Dear Michelle Thank you for requesting my analysis on Rokus potential investment opportunity After attending the Rokusponsored event and reviewing available information I have evaluated the company on ... View the full answer