Roku Slides After Reporting That Failed Bank Holds Chunk of Cash

Roku Inc. tumbled in extended trading after saying that 26% of its cash is being held by the failed Silicon Valley Bank.

(Bloomberg) — Roku Inc. tumbled in extended trading after saying that 26% of its cash is being held by the failed Silicon Valley Bank.

Shares of the company, which makes set-top boxes used to stream services like Netflix, plunged as low as $54.20 in late trading Friday. They trimmed the loss to 3.8% and were quoted at $57.83 as of 5:43 p.m. New York time. They closed at $59.99 in regular trading.

Roku had $1.9 billion in cash and equivalents on its book as of March 10, according to a regulatory filing Friday. About $487 million was with Silicon Valley Bank. San Jose, California-based Roku said it believes it has enough funds to meet its needs for the next 12 months and beyond.

According to federal regulators, depositors will have full access to their insured deposits no later than Monday, Roku said. The Federal Deposit Insurance Corp. will pay uninsured depositors an advance dividend within the next week and get a receivership certificate for the remaining amount of their uninsured funds.

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