How Did Roku Stand Down $2 Trillion Alphabet in YouTube Dispute?

After months of standoff, brand-agnostic streaming provider Roku has finally gotten YouTube back after Alphabet backed down.
Dec. 9, 2021
Unlock Free Stock Insights + 50% Off Discount Code!
Join thousands of savvy investors and get:
  • Weekly Stock Picks: Handpicked from 60,000 global options.
  • Ten Must-Have Stocks: Essential picks to hold until 2034.
  • Exclusive Stock Library: In-depth analysis of 60 top stocks.
  • Proven Success: 10-year track record of outperforming the market.
Sign up to our mailing list now and enjoy a 50% discount on premium services!
By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Policy and Terms of Use.

It was the bottom of the ninth and Roku's (NASDAQ: ROKU) staring contest with YouTube parent company, Alphabet (NASDAQ: GOOG), has finally ended.

But amid this game of cat and mouse between the two streamers, which has lasted months, why did Alphabet -- you know, the $2 trillion company behind Google -- blink first?

Roku's going places!

Let's do a quick recap for those of us who are a little lost: 


  • Back in April, Roku and Alphabet entered negotiations for a renewed deal.
  • The deal would see YouTube TV continue to be streamed on Roku's brand-agnostic platform. 
  • Roku didn't like Alphabet's terms, branding them as "predatory anti-competitive and discriminatory".
  • In October, Alphabet threatened to pull YouTube off of Roku's services from December 9th -- the dispute was even brought before Congress. 
  • Now, it seems a last-minute deal has been made. 

Though financial details haven't been disclosed, we know that it is a multiyear deal that will see YouTube and YouTube TV kept on Roku's streaming platform for its 56.4 million subscribers. 

Not only is it great news for Roku, which would likely have lost subscribers due to losing YouTube -- the world's most-used streaming service -- but it is massive for its advertising revenue. Roku takes a cut of advertisements to sell to its customers in each carriage deal it negotiates. YouTube is also the second most visited website on the internet:

That's a lot of potential ad revenue. 

It's a big win for the 'little guy'. Some of it may be to appease the antitrust regulators, but a lot of it could be that Alphabet sees a lot of potential in Roku, which has become a powerhouse negotiator in recent years. When the world's most-powerful website backs down, investors should take notice.

And, if anyone thought that Roku didn't have any pulling power before, they do now.

Are you looking for that right company to kickstart your portfolio? Look no further than MyWallSt, where our shortlist of market-beating stocks will take you to the next level. Don't believe us? Why not get free access today?


Unlock Free Stock Insights +50% Off Discount Code!
Join thousands of savvy investors and get:
  • Weekly Stock Picks: Handpicked from 60,000 global options.
  • Ten Must-Have Stocks: Essential picks to hold until 2034.
  • Exclusive Stock Library: In-depth analysis of 60 top stocks.
  • Proven Success: 10-year track record of outperforming the market.
Sign up to our mailing list now and enjoy a 50% discount on premium services!
By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Policy and Terms of Use.

The Home of Successful Investing.

© 2024 MyWallSt Ltd. All rights reserved.

Services

Content

Social

Company

Support

Resources

This website is operated by MyWallSt Ltd (“MyWallSt”). MyWallSt is a publisher and a technology platform, not a registered broker-dealer or registered investment adviser, and does not provide investment advice. All information provided by MyWallSt Limited is of a general nature for information and education purposes, and you should not construe any such information as investment advice. MyWallSt Limited does not take your specific needs, investment objectives or financial situation into consideration, and any investments mentioned may not be suitable for you. You should always carry out your own independent verification of facts and data before making any investment decisions, as we cannot guarantee the accuracy or completeness of any information we publish and any opinions that we publish may be wrong and may change at any time without notice. If you are unsure of any investment decision you should seek a professional financial advisor. MyWallSt Limited is not a registered investment adviser and we do not provide regulated investment advice or recommendations. MyWallSt Limited is not regulated by the Central Bank of Ireland. MyWallSt Limited may provide hyperlinks to web sites operated by third parties. Your use of third party web sites and content, including without limitation, your use of any information, data, advertising, products, or other materials on or available through such web sites, is at your own risk and is subject to the third parties' terms of use.