Streaming giant Roku has about one-fourth of its cash and equivalents amounting to nearly half a billion dollars held in the failed Silicon Valley Bank (SVB), a report details.
The entertainment company remains unsure how much of that cash it will recover, according to Variety.
As Breitbart News reported, the collapse of SVB was caused by a massive run on the bank, with customers driving withdrawals of $42 billion this week.
The bank was placed into Federal Deposit Insurance Corp. receivership on Friday after the California Department of Financial Protection and Innovation (DFPI) determined the bank had been rendered insolvent.
The financial institution was the 16th largest bank by assets with the U.S. Federal Reserve data showing the bank had $209 billion in assets as of December 31.
SVB had been attempting to find a buyer in the lead up to its insolvency but was ultimately unsuccessful.
The CEO of Silicon Valley Bank (SVB) sold $3.57 million of company stock just two weeks before the technology sector’s primary financial institution collapsed on Friday, according to federal filings. https://t.co/pvQ9yhnsDL
— Breitbart News (@BreitbartNews) March 11, 2023
Roku disclosed in an SEC filing that about $487 million of its $1.9 billion in cash and equivalents is held at SVB, or about 26 percent of the company’s cash and cash equivalents balance as of March 10.
The remaining $1.4 billion is “distributed across multiple large financial institutions,” Roku said in the filing as reported by Variety.
“The company’s deposits with SVB are largely uninsured. 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.
Roku Inc. announced last November it was set to lay off 200 employees, joining other big tech companies in downsizing thanks to the slowing Biden economy and growing fears of inflation.
That announcement came just weeks after the premiere of Weird, a Roku-produced feature film starring Daniel Radcliffe as “Weird Al” Yankovic.
The company also announced it would pay out up to $31 million in the fourth quarter for severance pay and costs related to the layoffs, which are expected to reduce staff by five percent.
Roku joins the likes of former Facebook company, Meta, which is reducing its workforce.
Meta cut 11,000 jobs last November, which is reportedly 13 percent of its workforce.
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