Roku has $487 million in cash at failed Silicon Valley bank – The Hollywood Reporter

The dramatic bankruptcy of Silicon Valley Bank on Friday will have a ripple effect that will impact the entertainment industry.

According to multiple securities filings on Friday, a number of entertainment-related companies had accounts at the bank. With the bank now in receivership with the Federal Deposit Insurance Corp., any deposit over the $250,000 FDIC-insured threshold is at risk until the FDIC determines how to allocate the bank’s assets.

That being said, so far none of the companies involved have said that SVB’s failure is expected to have a dramatic effect on their ability to operate.

Arguably the most affected company so far is Roku, which said it had $487 million at SVB, more than a quarter of its total cash.

“At this time, the Company does not know to what extent it will be able to recover its cash on deposit with SVB,” Roku warned investors. That being said, the company said the cash it holds in other financial institutions, as well as its cash flow from operations, “will be sufficient to meet its working capital, capital expenditures and its significant cash requirements from known contractual obligations for the next twelve months and beyond.

Other companies affected include video production platform Vimeo, which said it has accounts with SVB. However, he said the full value should be covered by the FDIC. “The company has a well-structured and diverse set of banking partners, with no bank holding more than 25% of its total cash,” the company said.

And Roblox said it holds around 5% of its cash holdings at SVB, which would total around $150 million. “Regardless of the end result and timing, this situation will have no impact on the day-to-day operations of the company,” he added.

And FuboTV, the pay-TV streaming operator, filed with the SEC to say yes, it is aware of SVB’s failure, but no, there is no bank account.

SVB was the 16th largest US bank until it closed on Friday. She specializes in serving startups in and around Silicon Valley.

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