Roku says 26% cash reserves stuck in Silicon Valley Bank
A video signal shows the brand for Roku Inc, a Fox-backed video streaming agency, in Occasions Sq. after the corporate’s IPO on the Nasdaq Market in New York, September 28, 2017.
Brendan McDermid | Reuters
Roku has $487 million of money and money equivalents in uninsured deposits at failed Silicon Valley Financial institution, the streaming media firm stated in an submitting on Friday with the Securities and Trade Fee.
About 26% of Roku’s $1.9 billion in money was deposited with SVB, which was positioned into receivership by the Federal Deposit Insurance coverage Corp. noon Friday.
Roku shares fell over 4% in prolonged buying and selling on the information.
“At the moment, the Firm doesn’t know to what extent the Firm will be capable to get better its money on deposit at SVB,” Roku stated in a press launch.
Nonetheless, Roku stated it believed it could be capable to meet its capital obligations for the “subsequent twelve months and past” with its unaffected $1.4 billion in money reserves at different “massive monetary establishments.”
“As acknowledged in our 8-Okay, we count on that Roku’s means to function and meet its contractual obligations won’t be impacted,” a Roku spokesperson stated in an announcement to CNBC.
The collapse of SVB jarred each massive and small firms alike. Because the favored lender and banker for a lot of Silicon Valley startups and enterprise capital corporations, the corporate’s receivership has alarmed founders, who fear about assembly payroll and significant obligations with restricted money accessible.
FDIC insurance coverage solely covers the primary $250,000 in deposit accounts, a fraction of the money that Roku and lots of different firms had vaulted with SVB.