Roku Hits Record High on Licensing Deal
Roku Inc's shares reached a record high on Monday after signing a licensing deal that would put its technology on Philips-branded televisions in the United States this year.
The news was well received by investors, who sent Roku's shares jumping 28.5 percent to close at $42.71 on Monday. The stock hit a high of $47.49 earlier in the session.
The streaming device maker announced that the licensing partnership with Japan's Funai Electric Co Ltd, which manufactures Philips N.V. televisions for North American, would place its operating system on Philips' smart TVs.
Roku also announced that it would give a $20 discount on its $69.99-priced streaming stick for the Black Friday weekend, and separately said its customer would get a free one-month trial of AT&T Inc's streaming service DirecTV Now.
The stock has gained 127 percent in heavy volumes over the past three days in a rally that was stimulated by the company's strong third-quarter report late on Wednesday.
Roku, one of the first to make a device to stream content such as from Netflix Inc. onto TVs, is now combating deeper-pocketed entrants such as Apple Inc., Alphabet Inc's Google and Amazon.com Inc. among others.
Still, up to Monday's close, Roku's stock has now more than tripled from its IPO price of $14 on Sept. 27. The stock debuted at $15.78 on the Nasdaq on Sept. 28.
Los Gatos, California-based Roku's success in the stock market is in stark contrast to the fortunes of other technology companies to make their market debuts this year.
Founder Becomes Billionaire
Even by the turbo-charged standards of Silicon Valley, the three-day surge in the fortune of Anthony Wood has been meteoric.
Anthony Wood, the 51-year-old founder and CEO, owns 27.3% of the company and the surge in Roku’s stock price has grown Wood's net worth, making him a billionaire.
The chief executive officer and founder of the maker of home streaming devices, added $652 million to his net worth since the company reported third-quarter results on Wednesday, giving the technology industry’s latest billionaire a $1.07 billion fortune.
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