Could someone please explain what SVB is and what money being stuck there means? Why do companies put money there? For what reason would a company file, or have to file, an 8-K?
Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
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Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#32Earlier quoted context omitted.
form 8-k itself seems to say 4 days or less: https://www.sec.gov/about/forms/form8-k.pdf
Great, so we can expect to see a flurry of 8-ks come Monday. In the wise words of South Park. “Anddddddddd… It’s gone!”
well four business days, so Thursday or whatever, but yea
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#33Could someone please explain what SVB is and what money being stuck there means? Why do companies put money there? For what reason would a company file, or have to file, an 8-K?
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Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#34Roku stock is down 2.29$ after hours. I wonder if there is any money to be made shorting companies wrapped up in this mess.
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Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#35Earlier quoted context omitted.
You need cash to pay for things, like payroll and rent.
But you typically run off firm promises of cash from investors. Then you only need a couple of weeks cash in the bank, and the investors promise to make cash available on demand as you need it.
> you typically run off firm promises of cash from investors
This is a leveraged operating model. It’s risky and tanked many firms when the CP markets froze in ‘08.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#36wow they lost almost half a billion
WOW they had how much money???
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#37A bummer to find out Roku ever raised 2B in the first place when I've met several brilliant founders with good ideas who failed to raise ~200k. Despite being a staunch capitalist, I have to say, funds are so cowardly allocated in SV.
You just need to tell your brilliant founder friends to get spun out of Netflix.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#38I think this might be the beginning. I think various funds (public or private) which have capitals stored in SVB is gonna be in a lot of trouble. Every investment firms are probably scanning their portfolios and business cash lines to see how much they are impacted by SVB and similar banks.
I wouldn't be surprised to see a run on banks in the next few days/weeks if additional rumors (true or not) come out.
Edit: didn't want to reply to everyone.
1. SVB probably thought they are in good shape, like every bank out there.
2. Even if the deposits are OK by early next week. Every banks/firms/funds will need to start reviewing their books and see what exposures they have. Even the slightest "issue" will trigger a bank run. Tolerance is really low at this point.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#39A bummer to find out Roku ever raised 2B in the first place when I've met several brilliant founders with good ideas who failed to raise ~200k. Despite being a staunch capitalist, I have to say, funds are so cowardly allocated in SV.
Until somewhat recently, Roku was profitable.
Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB
#40I was astonished that Roku has half a billion in cash. Then I learned this was only 26% of its cash reserves. I thought cash was considered wasteful because it loses value via inflation. Has the thinking changed? Can someone knowledgeable please help me understand this?
They're ramping up for their own branded TV line. Might be a temporary injection for that.