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