More than a quarter of Roku’s cash was at stake in the sudden collapse of Silicon Valley Bank. The streaming company held his $487 million in Silicon Valley Bank, representing 26% of the company’s cash. SEC filing Friday.
The future of these funds is determined by federal regulators. Taken over Second largest financial institution bank collapse in the history of the United States. “Our deposits in his SVB are largely uninsured,” Roku wrote in the filing. “At this time, we do not know to what extent we will be able to collect SVB’s deposits.”
In a statement on Friday, the Federal Deposit Insurance Corporation (FDIC) said it would “pay dividends in advance to uninsured depositors over the next week,” adding that “uninsured depositors will be eligible for insurance.” You will receive a trustee certificate for the remaining amount of unfunded funds.” However, there is still much uncertainty about how long that process will take to complete and how much money the uninsured fund company will ultimately be able to recover.
But at least for now, Roku’s situation is far less dire than many of the smaller startups that depended on Silicon Valley banks. pay invoice or employee.
In SEC filings, the company said it has more than $1 billion in cash at several other banks. “As stated in the 8-K, Roku’s ability to operate and fulfill its contractual obligations will be unaffected and it will continue to have access to $1.4 billion in cash and cash equivalents spread across multiple large financial institutions. We anticipate it.” A Roku spokesperson said in a statement to Engadget:
Silicon Valley Bank used to be a little-known institution, but it was known for its close relationships with the startup founders that make up the majority of its customers. but, Bloomberg’s Matt Levine I will explainbanks’ reliance on fixed-rate assets ultimately Run at a bank on Thursday after a prominent venture capitalist urged the founders to move their money out of the institution.
Roku isn’t the only public tech company currently facing losses as a result of bank failures. Roblox had his $3 billion, about 5% of cash, with Silicon Valley Bank, the company said. SEC“Regardless of the final outcome and timing, this situation will not affect the company’s day-to-day operations,” the company wrote in its filing.Video service Vimeo disclosed Had “less than $250,000” in the bank.
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