Question 5 10 pts A cable company (Spectra) and a streaming media company (ROKO) are competing to acquire Hulu. Suppose that Spectra's stand- alone equity value is $5 billion, ROKO is worth $3 billion, and Hulu's value is $1 billion. Spectra can acquire Hulu with a $1.4 billion cash offer. Spectra plans to make no investments to improve Hulu and expects to generate zero synergies with the merger. Instead, Spectra estimates that it will incur revenue losses if it does not buy Hulu. ROKO would then acquire Hulu and expand its offerings, leading to revenue losses to Spectra, estimated to be worth $2 billion. O Spectra is overpaying and thus should not acquire Hulu. If it acquires Hulu, Spectra's value would be $4.5 billion. None of the other options are correct. Spectra's expected gain from acquiring Hulu, and preventing ROKO from buying it, is $1.6 billion. If ROKO acquires Hulu, Spectra's value would be $3.8 billion