“As of today, we have agreed to a multi-year extension with Google for YouTube and YouTube TV,” Roku said in a tweet on his verified Twitter account.
The terms of the new trade deal were not disclosed by either company.
“This agreement represents a positive development for our mutual customers, making YouTube and YouTube TV available to all streamers on the Roku platform,” Roku added. That’s good news for Roku’s 56.4 million active users.
Actions of Roku (ROKU)
surged 18% on the news to $ 256 a share, although the stock is still down around 25% this year and has plunged nearly 50% from its all-time high of over $ 490 from to June of this year.
As Zoom (ZM)
, platoon (PTON)
and other businesses that have capitalized on the ‘stay at home’ trend in the worst of the Covid-19 pandemic, Roku’s stock has pulled back as the economy has returned to normal.
Actions of Alphabet (GOOGL)
, the parent company of YouTube and Google, were flat on Wednesday.
Roku’s deal with YouTube TV ended in April, so Roku removed the app from its platform. YouTube TV offers live broadcasts from nearly 100 popular channels, including ESPN, CBS, Fox News and CNN, as well as others AT&T (T)
/ Networks owned by WarnerMedia such as TNT and TBS.
The new deal means that the main YouTube app will also remain on Roku.
Google’s previous business deal with Roku was set to expire on Thursday, which means any new user wouldn’t have been able to download the YouTube app from the Roku store unless a deal was struck.
The battle between the two companies had turned sour before burying the hatchet.
Roku said in a October update to customers
that “this kind of blatant retaliation and monopoly conduct is probably why the US Department of Justice and 30 state attorneys general are investigating Google for violating fair competition laws.”