A video sign displays the logo for Roku Inc, the Fox-backed video streaming company, in Times Square after the company’s IPO on the Nasdaq Market in New York, September 28, 2017.
Brendan McDermid | Reuters
year has $ 487 million in cash and the equivalent of cash in uninsured deposits in failure Silicon Valley Bankthe streaming media company said in an SEC filing on Monday.
About 26% of Roku’s $1.9 billion in cash was held at SVB, which was placed into receivership by the FDIC at midnight on Friday.
Roku shares fell over 4% after hours on the news.
“At this time, the Company does not know to what extent the Company will be able to recover the money on deposit at SVB,” Roku said in a press release.
However, Roku said it is confident it will be able to meet its capital obligations over the “next twelve months and beyond” with $1.4 billion in cash reserves that are not impacted by “large financial institutions.”
“As stated in our 8-K, we expect Roku’s ability to operate and fulfill its contractual obligations will not be affected,” a Roku spokesperson said in a statement to CNBC.
The collapse of SVB affected companies large and small. As the preferred lender and banker for many Silicon Valley startups and venture capital firms, the company’s receivership has shocked founders, who are worried about paying salaries and critical obligations with limited cash.
FDIC insurance covers only the first $250,000 in deposit accounts, a fraction of the cash that Roku and many other companies have deposited with SVB.