Roku Shares Plummet After Amazon, Best Buy TV Deal
Shares in video streaming platform, Roku, have plummeted by as much as 9.4% following a recent smart TV partnership struck by Amazon and Best Buy.
As previously reported, earlier this week Amazon and Best Buy announced an exclusive partnership, to sell Toshiba and Insignia TVs integrated with Amazon’s Fire TV technology, and its smart voice assistant ‘Alexa’.
A major player in the United States, Roku’s operating system is built into several smart TVs – a fact recognised by many investors, culminating in its recent share price hit.
Roku is known for generating over half its revenue from advertising and subscriptions in its platform, complimenting the sales of its streaming sticks and boxes.
Following news of the Amazon/Best Buy deal, shares in Roku dived by 9.4% to US$32.62 on Wednesday. By contrast, shares in Best Buy climbed 3.8%, and Amazon’s lifted 1.7%.
Despite a formerly intense market rivalry, Amazon Boss, Jeff Bezos, affirms he couldn’t have asked for a better partner than Best Buy.
At @BestBuy catching up with CEO Hubert Joly and announcing our collaboration on the next generation of smart TVs. Couldn’t ask for a better partner, and the product is killer. Full Alexa integration: “Alexa, watch ABC” or “Alexa, watch Westworld.” #FireTVEdition pic.twitter.com/Dsq8VBOSA7
— Jeff Bezos (@JeffBezos) 18 April 2018