Roku says 26% of its cash is stuck in a Silicon Valley bank

A video sign shows the logo of Fox-backed video streaming firm Roku Inc 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 cash equivalents in uninsured deposits Silicon Valley Bankthe streaming media company said in an SEC filing on Friday.

About 26% of Roku’s $1.9 billion in cash was deposited into SVB, which was placed into receivership by the FDIC on Friday afternoon.

Roku shares fell more than 4% in the hours following the news.

“At this time, the Company does not know how much of the Company’s cash on deposit with SVB,” Roku said in a press release.

Still, Roku said it believes it can meet its capital commitments “for the next twelve months and beyond” with $1.4 billion in cash reserves 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 to CNBC.

The collapse of SVB hit both large and small companies. The company’s perception as a go-to lender and banker for many Silicon Valley startups and venture firms has worried founders, who worry about cash-strapped salaries and significant commitments.

FDIC insurance covers only the first $250,000 in deposit accounts, which is a fraction of the cash that Roku and many other companies keep at SVB.

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