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Don’t be surprised if Roku gets scooped up by a competitor in 2025, according to Needham. “The top 6 reasons to acquire Roku (our view) include its installed base, unique data sets, pricing power, shelf space, buy vs build advantages, and the fact that it’s now the only scaled CTV platform that can be purchased,” wrote analyst Laura Martin. She expects the company to be bought for a “large premium” over the next 12 months as Republicans take control of regulatory agencies. Shares popped about 5% before the bell. Despite a 17% year-to-date slump, Martin holds a buy rating and $100 price target, reflecting 32% upside from Tuesday’s close. The potential buyers include a slew of streamers such as Netflix , connected TV advertising companies such as The Trade Desk , retailers and large language model operators “hungry for billions of new data points daily,” Martin wrote. On the data front, she thinks Roku offers the “best in class consumer demand/viewing and ad spending data points” and called data one of its “most undervalued assets.” The company’s control over ad viewing across programs also gives it pricing power. “Roku has nearly all the power and negotiating leverage in these relationships, owing to its scale and its ability to drive viewing by using its home pages to direct audiences,” Martin noted. ROKU YTD mountain Shares this year She thinks the company should also harness its critical data as a bargaining tool to convince a company to acquire it at a premium. “Roku is the only scaled alternative that can be bought,” Martin said. “A buyer only needs to convince Anthony Wood (Roku’s founder and CEO who controls Roku’s super-voting shares) to sell, and Roku is theirs.”
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