Roku Stock Jumped 20% on Friday. The Index Move Coming June 22 Could Matter More Than the Buyout Buzz.
The streaming platform company's stock surge had two drivers.
Roku Stock Jumped 20% on Friday. The Index Move Coming June 22 Could Matter More Than the Buyout Buzz.
Overview
Shares of streaming pioneer Roku (NASDAQ: ROKU) jumped about 20% on Friday, touching their highest level in about four years, after Bloomberg reported that the company is in talks to sell itself. According to the report, Roku has held discussions with at least one unnamed U.S. media company about a potential combination, though no decisions have been made and there is no certainty the talks will lead anywhere. At one point during the session, the stock was up as much as 24%.
The chatter is easy to get excited about. A strategic buyer would be acquiring a platform that reaches more than 100 million streaming households, and the company's market value sits at about $21 billion as of this writing.
Details
But a rumor is not a bid. And the takeover headline overshadowed a second catalyst behind Friday's move -- one that is already confirmed, and one that comes with a date: June 22.
Source
Originally published at www.fool.com.
