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Roku Soars on Extending Deal for YouTube on its Devices -Breaking

© Reuters

By Dhirendra Tripathi – Roku Stock (NASDAQ:) rose 9% on Wednesday after the company announced a multiyear agreement to continue its relationship with YouTube.

“Effective today, we have agreed to a multi-year extension with Google (NASDAQ:) for YouTube and YouTube TV. This agreement represents a positive development for our shared customers, making both YouTube and YouTube TV available for all streamers on the Roku platform,” Roku tweeted.

Both companies have been battling for months over anti-competitive accusations and threaten to remove the largest video streaming company from millions of TVs.

Roku had called Alphabet-owned Google’s terms unfair and said they favored YouTube in search results. YouTube described their efforts as user-friendly, and charged Roku with misusing its market power in order to get a better deal.

Roku has removed YouTube TV from its channel shop after an agreement expired. YouTube with over 2 billion monthly users threatened to remove its main Roku app when it was announced that the agreement for the service would end on Thursday. Roku stated last month that 56 million people have active Roku accounts.

Roku’s stakeholders are relieved by the conclusion of this deal. Although users have the option to access various apps from their TVs, Roku’s TVs can also stream popular apps such as YouTube. This is an important selling point for both a platform company or a franchise like Roku.  

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.