Roku Had $487 Million in Silicon Valley Bank Whose Failure Is Rolling Tech and Wall Street
thewrap.comdocuments filed Friday, Roku disclosed that it had approximately $487 million held by Silicon Valley Bank, the Northern California financial powerhouse that failed this week, sending shockwaves throughout the region’s economy.That number, Roku says, represents approximately 26% of its cash and cash equivalents, and the company will be able meet its pending financial obligations for at least “the next 12 months and beyond.”Santa Clara-based Silicon Valley Bank was closed on Friday by the California Department of Financial Protection and Innovation, a spectacular and rapid end to what had for decades been one of the pillars of financing in the white hot tech industry economy.It’s a complex and still developing story but what is known is that on Wednesday, the bank told investors it needed to raise just over $2 billion to offset $1.8 billion in losses it incurred from investments in mortgage backed securities, which were devalued thanks to the Fed’s decision to raise interest rates.Despite the somewhat routine nature of the announcement, the next day, in what one investor described as “This was a hysteria-induced bank run,” dozens of SVB’s venture capital clients — urged on by billionaire Peter Thiel — attempted to pull their assets from the bank.More to come….
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