Roku stock price has increased quite a bit, as Google acquisition rumors float around. Shares of Roku managed to attract attention on Tuesday when they rose 12-percent.
This happened despite the relatively quiet session for the company, so it’s safe to assume that the aforementioned rumors have something to do with it.
Roku stock price rises, even though Google didn’t suggest it’s interested in purchasing the company
Alphabet allegedly wants to acquire Roku, and that is affecting the company’s stock prices. That rumor, on its own, is quite interesting. Why? Well, Google hasn’t expressed the wish to buy Roku, at all.
On the other hand, Roku hasn’t said it’s for sale, at all… it didn’t even give an indication of that. This is not the first time such rumor surfaced, though.
Acquiring Roku may be beneficial for Alphabet, no doubt about that. Perhaps that’s why such rumors are surfacing, even though there may be no merit to them.
Streaming TV is in high demand at the moment, and Google is an advertising machine. So, it’s not exactly difficult to imagine these two being an ideal match.
Despite the COVID-19 outbreak, connected TV is the most resilient connected-device category, according to the Interactive Advertising Bureau. So, as a number of other ad channels have felt the impact of COVID-19, that has not been the case with connected TV.
Roku is slowly, but surely, becoming a default operating system for connected TVs, at least in the eyes of some. So, acquiring it may benefit Google, greatly.
Just to be clear, this doesn’t mean you should go ahead and start buying Roku shares. This is just a rumor at this point, and a vague one. Neither company indicated it will go through.
The direction in which Roku shares will go from this point is unknown
We’re not experts on shares prices nor can we predict how things will progress from this point on. Roku shares may be on a downward spiral from this point on, who knows.
This rumor is quite interesting, though, as it makes a lot of sense for Google, especially considering the situation in the world at the moment.
One thing is for sure, if Google does approach Roku regarding the sale, it will cost a lot. Roku is a huge company at this point, and it does have a lot to offer, so it will be interesting to see how high will its price be, if the sale ever takes place.