Roku’s shares plunged after Amazon and Best Buy announced plans to team up to sell smart TVs.
Shares of Roku plunged more than 12% Wednesday after Amazon and Best Buy announced plans to team up to sell smart TVs.
Under the deal, Best Buy will become one of the only brick-and-mortar retailers where customers can walk in and buy a TV powered by Amazon’s Fire TV software. The TV’s will also be sold on Best Buy’s website. In exchange, Best Buy ( BBY) will be a third-party seller on Amazon.com, giving the retailer access to Amazon’s ( AMZN) vast customer network.
Shares of streaming device maker Roku ( ROKU) were previously on a tear this week. The company announced on Monday its media streaming device would offer access to ESPN+, allowing users to stream Disney’s sports content for $4.99 per month or $49.99 per year. Shares continued climbing Tuesday, after Steven Cohen’s Point72 Asset Management took a 5.1% passive stake in the company.
Wednesday’s losses virtually wiped out Roku’s recent gains. Shares of Roku are down 36% this year.
–The Associated Press contributed to this report.
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