Shares of the digital media player manufacturer, Roku, surged more than 7% on Monday after speculation of a potential deal with Apple hit the market.
The reason behind this speculation was presence of Roku’s CEO Anthony Wood at Apple’s Cupertino campus on Monday, where Apple is expected to unveil its new streaming TV service. On the face of it, it may seem like Roku is in competition with Apple, who is likely to introduce smart TVs and other devices in the market which is likely to allow users to stream over-the-top content. But the presence of Roku’s CEO at the event suggests that both the companies are likely to work together to stay ahead of the curve.
According to the WSJ, Apple has been in talks with Roku and other platforms about hosting its TV app and the announcement of this arrangement is likely to happen on Monday.
Shares of Roku have risen ~114% from last year and with this jump, the company added ~$500 million to its market value, making it now worth $7.5 billion.