On Friday, the FDIC placed Silicon Valley Bank into receivership, leaving many companies, including streaming media firm Roku, uncertain about their financial futures. Roku had $487 million of cash and cash equivalents in deposits at the failed bank, but did not know to what extent it would be able to recover its cash. Despite this, the company expressed confidence that it would have sufficient funds to meet its capital obligations for the next twelve months. The news of SVB's collapse caused Roku shares to tumble nearly 5% after hours.
The FDIC will cover the first $250,000 of each deposit account, but the impact of the bank's failure has been felt by many, including venture capitalists and founders who are now left with limited cash reserves. This has caused concern about being able to meet payroll and other critical obligations. The future of Roku and other companies affected by the receivership of Silicon Valley Bank remains uncertain.