This week, there have been rumors that Google is interested in acquiring Roku. Here’s what we know.
Rumors about Google buying Roku aren’t new. There has been talk of a potential acquisition since at least last year. This week, those rumors ramped up, but no one seems to be sure how they started. The Motley Fool notes that Google hasn’t publicly expressed interest in Roku and Roku hasn’t commented on being open to an acquisition. “To be clear, there’s no substance to this buyout speculation,” Motley Fool says.
With renewed talk of the possibility of Alphabet, Google’s
parent company, being interested in Roku this week, Roku shares increased over
12% on Tuesday.
Google is already in the steaming game with YouTube TV and Chromecast, but there’s no doubt that the company sees the value in the leading connected TV device. With the streaming media device market on track to be worth $89.5 billion in 2026, the investment would be well worth it for a company that has the cash to make the deal. Market Realist says that Google finished Q1 with $117 billion in cash while Roku is currently valued at $15 billion.
If you’re thinking about investing in Roku, Motley Fool says it might be better to hold off. “While the acquisition rumor isn’t preposterous, it also isn’t actionable. Again, neither company has given shareholders any reason to believe an acquisition is imminent.”
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Source: Cord Cutters News