Roku stock (ROKU) saw a 9.06% jump on Wednesday and it was not by accident. The surge was a result of a report made by Business Insider that claims Roku is a subject of a takeover bid by a streaming service giant Netflix.
Insider based its claim on the fact that Roku closed the insider trading window several weeks ago. As a result, its employees are now unable to sell their vested shares in the company. However, while similar moves can be a sign of a possible takeover, they can also indicate an array of other things.
Industry experts are somewhat divided on the potential deal. Some believe it would be a natural move for Netflix, considering that the company is looking into moving to an ad-supported market. However, others argue that it would not make sense for Netflix to buy Roku as the company would then have to manage the hardware side of the business as well.
Nevertheless, Roku stock has seen a spike from $93.42 per share on Tuesday to $101.88 on Wednesday morning. This is the first time in more than a month that ROKU surpassed $100 per share.
The rumors also benefited Netflix, which saw its stock jump from 195.18 on Tuesday to $206.90 on Wednesday morning. NFLX closed the day trading at 202.83 per share.