- About $487 million, or 26% of Roku’s cash reserves, are stuck at Silicon Valley Bank, the streamer said in an SEC filing Friday.
- Shares fell hours after the news, but the company believes its remaining reserves will be sufficient to meet its financial obligations for at least the next 12 months.
A video sign displays the logo of Roku Inc, a Fox-backed video streaming company, in Times Square following the company’s IPO on the Nasdaq Market in New York, September 28, 2017.
Brendan McDermid | Portal
Roku has $487 million in cash and cash equivalents in uninsured deposits at the failed Silicon Valley Bank, the streaming media company said in an SEC filing on Friday.
About 26% of Roku’s $1.9 billion in cash was deposited with SVB, which was placed under receivership by the FDIC as of Friday noon.
Roku shares fell over 4% after hours on the news.
“At this time, the Company does not know the extent to which the Company will be able to recover its cash deposits with SVB,” Roku said in a press release.
Nonetheless, Roku said it believes it is able to meet its capital commitments for the “next 12 months and beyond” with its unaffected $1.4 billion in cash reserves at other “major financial institutions.”
“As indicated in our 8-K, we expect Roku’s ability to operate and meet its contractual obligations will not be impacted,” a Roku spokesperson said in a statement to CNBC.
The collapse of the SVB has rocked businesses big and small alike. As the preferred lender and banker for many Silicon Valley startups and venture capital firms, the company’s bankruptcy service has alarmed founders who are concerned about meeting payroll and important obligations when cash resources are limited.
FDIC insurance only covers the first $250,000 in deposit accounts, a fraction of the cash Roku and many other companies salvaged from SVB.