Amazon Just Put a Dent in Roku's Latest Acquisition
Over the summer, Amazon (NASDAQ: AMZN) started letting marketers buy advertisements for its Fire TV platform through third-party demand-side platforms (DSPs), including The Trade Desk (NASDAQ: TTD) and DataXu. In the fall, Roku (NASDAQ: ROKU) -- Amazon's biggest competitor in the connected TV space -- acquired DataXu. And now, Amazon is cutting off DataXu users from its Fire TV platform.
Amazon's move to curb its competition stands in contrast to Roku's plans to keep its inventory open to third-party DSPs even after the acquisition of DataXu. There are a couple of negative implications for Roku stemming from Amazon's move that investors need to consider.
Image source: Roku.
Source Fool.com
