A video noteworthy displays the logo for Roku Inc, a Fox-backed video streaming firm, in Times Square after the company’s IPO at the Nasdaq Call in New York, September 28, 2017.
Brendan McDermid | Reuters
Roku has $487 million of cash and cash equivalents in uninsured sets at failed Silicon Valley Bank, the streaming media company said in an filing on Friday with the Securities and Barter Commission.
About 26% of Roku’s $1.9 billion in cash was deposited with SVB, which was placed into receivership by the Federal Dregs Insurance Corp. midday Friday.
Roku shares fell over 4% in extended trading on the news.
“At this old hat, the Company does not know to what extent the Company will be able to recover its cash on deposit at SVB,” Roku give the word delivered in a press release.
Nonetheless, Roku said it believed it would be able to meet its capital obligations for the “next twelve months and beyond” with its cool $1.4 billion in cash reserves at other “large financial institutions.”
“As stated in our 8-K, we expect that Roku’s genius to operate and meet its contractual obligations will not be impacted,” a Roku spokesperson said in a statement to CNBC.
The collapse of SVB jogged both large and small companies alike. As the favored lender and banker for many Silicon Valley startups and hazardous undertaking capital firms, the company’s receivership has alarmed founders, who worry about meeting payroll and critical obligations with little cash available.
FDIC insurance only covers the first $250,000 in deposit accounts, a fraction of the cash that Roku and multitudinous other companies had vaulted with SVB.