Roku Files For $100M IPO To Fend Off Streaming TV Boxes From Amazon And Apple

Roku has been one of the leading makers of streaming set top boxes for a long time now and it has some serious competition in the market. Those competitors include Amazon and Apple and that competition will only grow. A rumor is making the rounds that an Apple TV supporting 4K HDR is set to debut alongside the iPhone 8.

One of the things that Roku needs to compete in the market is money and to get that cash, Roku has applied for an initial public offering (IPO). The company has stated that it applied to list Class A common stock on Nasdaq and wants to use the ticker symbol "ROKU". This is a big move for Roku, but some key details about the IPO are a mystery right now.

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Details that we don't know include how many shares Roku plans to offer and what sort of price range they are eyeing for their stock. We do know that it filed to raise up to $100 million, but the amount it raises during the offering could be different than that amount. Roku currently has 15.1 million active accounts as of June 30 as listed on the IPO filing. Roku also shared some other interesting details about the health of its business in the filing.

Roku says that it streamed 2.9 billion hours of content over the six months that ended June 30. That amount of hours also included advertising streamed to viewers. Roku says that 2.9 billion hours number is a 76% increase from the same period the prior year indicating robust growth. Roku notes in its filing that Morgan Stanley and Citigroup Global markets Inc. are its bookrunners.

The last new products we talked about from Roku were launched back in September of 2016. Those new products included an entirely refreshed line starting with the basic $30 Roku Express that was small in stature but still had a HDMI port with 1080p support and other features. At the top of the range was the Roku Ultra for about $130 that supports Dolby Digital and Digital Plus along with 4K HDR content.


Tags:  Roku, Business, IPO
Via:  Reuters
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