Roku says 26% cash reserves stuck in Silicon Valley Bank
A video signal shows the emblem 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 SEC submitting Friday.
About 26% of Roku’s $1.9 billion in money was deposited with SVB, which was positioned into receivership by the FDIC noon Friday.
Roku shares tumbled almost 5% after hours on the information.
“At the moment, the Firm doesn’t know to what extent the Firm will have the ability to recuperate its money on deposit at SVB,” Roku stated in a press launch.
Nonetheless, Roku stated it believed it might have the ability to meet its capital obligations for the “subsequent twelve months and past” with its unaffected $1.4 billion in money reserves at different, “giant monetary establishments.
The collapse of SVB jarred each giant 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 out there.
FDIC insurance coverage solely covers the primary $250,000 in deposit accounts, a fraction of the money that Roku and plenty of different firms had vaulted with SVB.
Representatives for Roku didn’t instantly reply to a request for remark.