Roku shares soar nearly 8% after reaching a multi-year deal with Google to keep YouTube and YouTube TV on its streaming site, according to a report by CNBC on Wednesday.
- The agreement will allow the 56.4M active Roku accounts to continue watching YouTube and YouTubeTV without any disruption.
- Google had initially threatened to remove both YouTube and YouTube TV off Roku on December 9. The fight gained the attention of the US Congress that has been trying to trim the power of big tech firms like Google.
- Mariana De Felice, a YouTube spokesperson, stated that the company was happy to announce a deal with Roku to continue distributing the YouTube and YouTube TV apps on Roku platforms.
- The agreement avoids the potential removal of YouTube that could cause customer defections for Roku. Competitors including AppleTV and Amazon Fire TV also host YouTube.
The negotiation process between Roku and YouTube stalled over both parties’ need for advertising revenue. ROKU up 11.79%, GOOGL down -0.48%