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Roku says 26% of cash reserves trapped in Silicon Valley Bank


A video sign displays the logo of Roku Inc, a Fox-backed video streaming company, in Times Square following the company’s IPO at Nasdaq Market in New York, September 28, 2017.

Brendan McDermid | Reuters

Roku have $487 million in cash and cash equivalents in uninsured deposits on failure Silicon Valley Bankonline media company said in an SEC submit Friday.

About 26% of Roku’s $1.9 billion in cash went into SVB, put into reception by the FDIC at midday on Friday.

Roku stock fell more than 4% hours after the news.

“At this point, the Company does not know to what extent it will be able to recover its deposits at SVB,” Roku said in a press release.

However, Roku said it believes it will be able to meet its capital obligations over the “next twelve months and beyond” with $1.4 billion in cash reserves unaffected at ” other major financial institutions”.

“As stated in our 8-K, we expect that Roku’s ability to operate and meet its contractual obligations will not be affected,” a Roku spokesperson said in a statement. told CNBC.

SVB’s demise is jarring both are big and small companies alike. As the preferred lender and banker to many Silicon Valley startups and venture capital firms, the company’s receptivity has alarm founderswho worry about meet payroll and important obligations with limited cash available.

FDIC insurance only covers the first $250,000 in a deposit account, a fraction of the cash that Roku and many others have accumulated with SVB.

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