Roku Loses $487 Million in Cash Following Silicon Valley Bank Failure

Streaming video pioneer Roku says it lost $487 million, or 26% of its cash and cash equivalents, following the sudden March 10 closure of Silicon Valley Bank by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as the bank’s receiver.

San Jose-based Roku, in a regulatory filing, said it has about $1.4 billion of its cash and cash equivalents deposited across numerous financial institutions, including SVB, whose collapse is reportedly the largest banking failure since the Great Recession in 2008.

Roku said its deposits with SVB are largely uninsured, and it does not know to what extent it would be able to recover its cash on deposit at SVB. In the filing, the FDIC said all insured depositors of SVB would have full access to their insured deposits no later than Monday morning, March 13.

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The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of SVB, future dividend payments may be made to uninsured depositors.

Notwithstanding the closure of SVB, Roku said it believes that its existing cash and cash equivalents balance and cash flow from operations will be sufficient to meet its working capital, capital expenditures, and material cash requirements from known contractual obligations for the next 12 months and beyond.