Streaming media player maker Roku revealed on Friday that around 26% of its cash and cash equivalents (around $487 million) were held in deposits with Silicon Valley Bank (SVB) Financial Group.
That group was shut down by California financial regulators today who put it under the control of the FDIC. Roku said in a regulatory filing with the SEC that its deposits with SVB were largely uninsured – so it’s unsure the extent to which it will be able to recover that cash.
Roku’s remaining $1.4 billion is “distributed across multiple large financial institutions” and Roku says it has enough existing cash and cash flow from operations to “meet its working capital, capital expenditures, and material cash requirements from known contractual obligations” for the next year “and beyond”.
SVB, the 16th-largest bank in the United States, collapsed this morning after depositors hurried to withdraw money this week amid anxiety over the bank’s health. It has led to the second-largest failure of a bank in United States history, behind only the collapse of Washington Mutual in 2008.
Roku devices popularized the concept of low-cost small set-top boxes for media consumption of VOD, SVOD, AVOD and PVOD services in the United States and had 65.4 million active accounts as of September last year.
Source: CNN
