📰 The Trade Desk and Roku Merger Underway?
A merger could help both companies challenge Alphabet and Amazon in the connected TV market.
Shares of Roku ROKU 0.00%↑ and The Trade Desk TTD 0.00%↑ rose after an analyst suggested the two companies should merge. Guggenheim analyst Michael Morris pointed out that Trade Desk's new connected TV operating system, Ventura, could struggle to compete against giants like Roku, Alphabet, and Amazon. He believes a merger would allow The Trade Desk to scale quickly using Roku's large streaming base, while Roku could benefit from Trade Desk's growing ad inventory and first-party data.
Morris noted that launching a new operating system is difficult, but combining the companies could help them fend off larger competitors in the CTV space. Although the idea is purely hypothetical, the suggestion sparked positive market reaction, with both Trade Desk’s and Roku’s shares are up. Investors are optimistic about the potential synergies, even though no formal discussions are currently underway.
Source: Yahoo Finance, Barron’s
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