After the company announced that it had reached a new long-term deal with Google to keep YouTube on its streaming platform, shares of the company jumped nearly 20%.
The new deal is a big win for the company.
Jenny Kane is an Associated Press reporter.
The video streaming service said Wednesday that it had reached a new multiyear deal with the search giant that would keep both YouTube and YouTube TV on its platform.
The good news of a 20% increase in the stock price was cheered by investors, but shares are still down overall in 2021.
With the previous deal set to expire this month, the new agreement will allow more than 56 million customers to continue to watch.
The latest development is a big win for Roku after months of sparring with Google: The company warned repeatedly earlier this year that an agreement may not be reached, with Google taking its YouTubeTV app off the platform for over five months amid tense negotiations.
In October, the conflict drew attention from Congress, after it was alleged that Google was making anti-competitive demands.
It would have been a blow to the company if it lost both YouTube and YouTube TV, as it looks to retain customers going into the holiday season.
The company said that they had agreed to a multi-year extension with the company. The agreement will make both YouTube and YouTube TV available for all streamers on the Roku platform.
The long-term nature of the deal with Google presents a big upside for the company. The company got a boost from stay-at- home customers during last year's Pandemic Lockdown. In 2020 the market rebounded from a low point in March and shares of Roku went up more than 100%. This year has been different, asemic-favorite stocks have recently struggled amid the ongoing economic recovery, as investors turn their attention to travel-related stocks like cruises and airlines. The shares of the company are down.
$5.3 billion is a big number.
According to Forbes, Anthony Wood is worth about $65 million. His fortune was $7 billion a year ago.
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