Summary:

Buried in Netflix’s earnings call Wednesday were some details about the company’s sale of its stake in set-top maker Roku to Menlo Ventures.…

Roku SD player
photo: Roku

Buried in Netflix’s earnings call Wednesday were some details about the company’s sale of its stake in set-top maker Roku to Menlo Ventures. Asked about the sale, CEO Reed Hastings said the company “booked a gain pre-tax of about $1.7 million — after tax that translates to $1.035 million” on the deal. Netflix (NSDQ: NFLX) had reportedly invested about $6 million in Roku two years ago, so the sale appears to represent a 28 percent return (A spokesman said the company hadn’t disclosed exactly how much it sold its stake for). A $1 million gain doesn’t do much to Netflix’s bottom line — Hastings said it was equivalent to two cents a share in EPS — but the deal could have some implications for Roku’s stated hope to have an IPO as soon as 2011. Seems that Menlo Ventures and the company’s other backers would expect a much bigger return than 28 percent if Roku sold its shares to the public.

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