Shares of The Trade Desk (TTD, Financials) and Roku (ROKU, Financials) rose Monday following a Guggenheim note suggesting the potential benefits of a merger between the two companies.

After Guggenheim pointed out a potential mix to improve each company's market standing, Trade Desk and Roku both rose more than 5% in early market trading. According to the study company, cooperation instead of rivalry can help the two companies to become closer.

Guggenheim alluded to shared competitive risks from Amazon (AMZN, Financials) and Alphabet (GOOGL, Financials) and observed that The Trade Desk's presently in-construction Ventura operating system has difficulties reaching enough market penetration.

"With Roku shares currently trading at 2x 2025E platform sales, we believe TTD could rapidly scale its OS ambitions via ROKU’s 85mm+ global streaming household footprint, while ROKU could quickly leverage its first-party viewer data and expanding CTV inventory to match with growing advertiser demand," Guggenheim said.

Recent updates show that The Trade Desk and Roku are actively improving their offerings.

Aimed at enhancing the ad purchasing experience, Roku and The Trade Desk revealed in April 2024 a data-driven TV streaming collaboration. This cooperation lets marketers utilizing The Trade Desk use Roku's audience and behavioral data, hence improving campaign planning and measurement for TV streaming consumers.

The Trade Desk debuted a new streaming TV operating system called Ventura in November 2024. With hopes for distribution as early as 2025, the business intends to collaborate with smart TV makers and other streaming aggregators to use Ventura.

Furthermore, Roku has included The Roku Channel within Google TV so that consumers may straight from the Google TV interface access to Roku's large movie and TV program collection. Over 500 free ad-supported streaming television channels are part of this integration, therefore improving user content availability.

These projects show businesses' attempts to enhance user experiences in the competitive streaming and digital advertising sectors as well as their reach-expanding activities.