Shares of Roku (Nasdaq: ROKU) jumped 10% on news that it is reportedly close to striking a deal with telecommunications giant AT&T (NYSE: T) to bring HBO Max to its platform, according to sources cited by The Desk.
Assuming the deal goes through, Roku would join the world’s largest e-commerce player Amazon.com (Nasdaq: AMZN), which launched the popular video streaming service on Amazon Fire TV earlier this week.
On Tuesday, Steve Louden, the chief financial officer of Roku said during an online appearance at the RBC Capital Markets conference that he didn’t have an update on the company’s talks regarding HBO Max. However, he did say “we continue to talk to folks and our goal is to have all content on there.”
This year, both Roku and Amazon Fire TV are the two most prominent CTV devices, as both have generated 100.2 million and 72.7 million users respectively, according to a projection by Business Insider. The news outlet is also forecasting that Roku will take 48.6% of. CTV users in the U.S, while Amazon Fire TV will grab 35% of the share in 2020.
As for AT&T, its mass media arm, Warner Bros. announced today that the highly anticipated film Wonder Woman 1984 will hit HBO Max on Christmas, the same day it’s set to debut in theaters. Before the coronavirus pandemic happened, it was expected that the film would have a “good shot” at generating $1 billion globally, as CNN reported today.
Despite the news, the stock in AT&T was trading 1% lower from Wednesday’s close at $28.23 per share. Overall, AT&T has been challenged with the pandemic, as its shares are down 28% year-to-date.
As for Roku, shares are up 88% this year.