Why Roku Shares Are Rising Today

Roku Inc ROKU is surging Wednesday morning following reports suggesting the company and Alphabet Inc GOOGL GOOG have agreed on a multi-year deal extension for YouTube.

The deal will allow Roku customers to continue watching YouTube and YouTube TV on the Roku streaming platform.

"Roku and Google have agreed to a multi-year extension for both YouTube and YouTube TV.  This agreement represents a positive development for our shared customers, making both YouTube and YouTube TV available for all streamers on the Roku platform," Roku said in a statement.

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The two companies had been stuck in negotiations after Roku claimed Alphabet required it to favor YouTube content in the company’s search results.

Terms of the agreement weren’t disclosed.

ROKU Price Action: Roku has traded as high as $490.76 and as low as $196.94 over a 52-week period.

The stock was up 9.89% at $238.20 Wednesday morning.

Photo: Stock Catalog from Flickr.