Shares of Roku surged 20% on Friday afternoon following a report the streamer and hardware maker is in talks to sell itself.
Bloomberg reported that the company has been in discussions with at least one U.S. media company about a potential combination, though no final decisions have been made and there’s no certainty the talks will lead to a deal.
A Roku spokesperson did not immediately return TheWrap’s request for comment.
Roku, which reaches over 100 million households worldwide, sells streaming players which are used by more than half of all U.S. broadband households. Roku-made TVs are also available at major retailers and licensed Roku TV models are sold by leading TV brands in more than 15 countries around the world.
It also owns and operates the free, ad-supported streaming service The Roku Channel, a low-cost ad-supported streaming service Howdy and the live TV streaming service Frndly TV.
The reported talks come as Roku recently raised its full year outlook for 2026 after posting a record in premium subscription sign-ups and strong video advertising growth in its first quarter.
It expects platform revenue to grow 20% year over year and devices revenue to grow by high single digits in the second quarter, which will result in nearly 17% growth in total revenue to $1.3 billion. Total gross profit is projected to hit $580 million in the quarter, while adjusted EBITDA is expected to hit $170 million.
For the full year, Roku is projecting platform revenue growth of 21% to $5 billion, while devices revenue will come in at approximately $535 million, resulting in total revenue of $5.5 billion. It also remains on track to drive double-digit platform growth and achieve $1 billion in free cash flow by 2028.
