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Roku says 26% cash reserves stuck in Silicon Valley Bank

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

Brendan McDermid | Reuters

Roku has $487 million of cash and cash equivalents in uninsured deposits that failed Silicon Valley Bankthe streaming media company said in an SEC filing Friday.

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

Roku shares tumbled nearly 5% after hours on the news.

“At this time, the Company does not know to what extent the Company will be able to recover its cash on deposit at SVB,” Roku said in a press release.

Nevertheless, Roku said it believed it would be able to meet its capital obligations for the “next twelve months and beyond” with its unaffected $1.4 billion in cash reserves at other, “large financial institutions.

The collapse of SVB jarred both large and small companies alike. As the favored lender and banker for many Silicon Valley startups and venture capital firms, the company’s receivership has alarmed founders, who worry about meeting payroll and critical obligations with limited cash available.

FDIC insurance only covers the first $250,000 in deposit accounts, a fraction of the cash that Roku and many other companies had vaulted with SVB.

Representatives for Roku did not immediately respond to a request for comment.

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