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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

#81

Post by boeingUH60 »

notch898a wrote: post #70
boeingUH60 wrote: post #60

Earlier quoted context omitted.

Silicon Valley Bank was a go-to bank for many big technology companies because it forged deep connections in the industry. The bank experienced a bank run and had to be taken over by the FDIC (U.S. government). Roku is letting investors know that they have a lot of cash stuck there and may not be able to access it for a while (as the FDIC tries to sort out the mess).

The US Government is the people of the US. They went over the 250k limit. If they don't have private insurance for that, fuck them they're on their own. Not big enough to bail out, the regular people didn't get it either in the great recession.

And of course, the FDIC is not guaranteeing deposits of over $250k. What's actually happening is that the FDIC will take care of the sub-$250k deposits by itself and sell the remaining assets of Silicon Valley Bank (which they have taken over) to sort out the remaining uninsured deposits.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#82

Post by tedunangst »

carstenhag wrote: post #50
iammiles wrote: post #15

To save people a quick search, here is part of the Wikipedia definition of Form 8-K: "...a very broad form used to notify investors in United States public companies of specified events that may be important to shareholders or the United States Securities and Exchange Commission."

And SVB means Silicon Valley Bank, which was shut down by a regulatory body some days ago: https://www.cnbc.com/2023/03/10/silicon-valley-investors-and... (seriously HN, we non-US people have never heard of your terms)

Eight of the current HN headlines are about SVB, four of which spell out Silicon Valley bank. Shouldn't be too hard to put it together.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#83

Post by echelon »

saurik wrote: post #68
pcdoodle wrote: post #64

Earlier quoted context omitted.

If you were ultra paranoid, what other institution types would be advisable to exit? Could this impact investments in the market?

How paranoid would you have to get before you'd be willing to convert all your money to crypto? ;P

If crypto had a navy and nukes, then maybe.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#84

Post by TacticalCoder »

kypro wrote: post #45
reactspa wrote: post #20

I 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?

You need some amount of cash for payroll, POs, etc. The rest is then generally held in "cash equivalents" such as short-dated government bonds. The latter has yield to offset inflation. But basically "cash" is being used quite loosely here. From the 8-K: > The Company has total cash and cash equivalents of approximately $1.9 billion as of March 10, 2023. Approximately $487 million is held at SVB, which represents app…

> The rest is then generally held in "cash equivalents" such as short-dated government bonds.

Wouldn't these bonds belong to Roku but simply be bought/sold/held, for a fee, by SVB?

I mean: my bank in Europe can go belly up, my stocks are my stocks and they'll be transferred to my new bank. They cannot be used as part of a bank "bail in" procedure (well at least I think and I hope that's the case).

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#85

Post by pcdoodle »

rcme wrote: post #79
saurik wrote: post #68

Earlier quoted context omitted.

How paranoid would you have to get before you'd be willing to convert all your money to crypto? ;P

Crypto was the first to fall

At least they still have their keys (hopefully).

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#86

Post by mtlmtlmtlmtl »

DanHulton wrote: post #63
AdamJacobMuller wrote: post #46

Earlier quoted context omitted.

rude. suggesting he must have been hiding under a rock for the past 2 days to miss the news is funny because it pokes fun at just how prolific the news on this has been in the past 48h, but, the shoelaces comment is implying that he's stupid for not seeing the news.

I think its more about how this information is all very easily researchable, especially now. And most news articles about this situation will have explainers about the finer details in the articles, at least enough to get you up to speed that you don't have to ask commenter on an HN thread for super basic information.

Pretty sure it's just a troll. User has 3 comments including that one.

Another is calling someone a son of a whore(I think) in Spanish. And the third is just saying don't customise emacs. The 2 first comments were in 2021. What a strange account.

Do comments ever get deleted(by mods) on HN? Looks kind of like an account with lots of comments, all deleted, so it's just 3 comments with a weird 2 year gap in between.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#88

Post by antondd »

hartator wrote: post #71

If you use your bank account brokerage to buy stocks, what happen to the stocks if the bank goes bankrupt like this?

Your stocks will be safe. The bank does not buy or sell stocks itself; this is handled by a stock broker that does trading on bank’s behalf.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#89

Post by cscurmudgeon »

notch898a wrote: post #70
boeingUH60 wrote: post #60

Earlier quoted context omitted.

Silicon Valley Bank was a go-to bank for many big technology companies because it forged deep connections in the industry. The bank experienced a bank run and had to be taken over by the FDIC (U.S. government). Roku is letting investors know that they have a lot of cash stuck there and may not be able to access it for a while (as the FDIC tries to sort out the mess).

The US Government is the people of the US. They went over the 250k limit. If they don't have private insurance for that, fuck them they're on their own. Not big enough to bail out, the regular people didn't get it either in the great recession.

You are misinformed. FDIC is not funded by the US govt. It operates on premiums.

> The FDIC receives no Congressional appropriations - it is funded by premiums that banks and savings associations pay for deposit insurance coverage. The FDIC insures trillions of dollars of deposits in U.S. banks and thrifts - deposits in virtually every bank and savings association in the country.

https://www.fdic.gov/about/what-we-do/index.html

(If anything, the US govt. and people receive more in taxes from the startup demographic and you should be looking at govt. corruption first if you are keen on saving taxpayer money.)

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#90

Post by chollida1 »

owenbrown wrote: post #73

I've always found it odd that cash-rich companies keep bank accounts, when they could purchase short-duration t-bills. There's now at least one business bank the will purchase t-bills on a companies behalf with minimal transaction costs.

If your Roku, How do you pay

salaries

interest on debt

Bills

Lobbyists

Foreign companies that manufacture your hardware

Hedge currency from foreign sales and bills

All without a bank account?

Keep in mind they say this is 25% of their cash, clearly they invested the bulk of their short terms assets elsewhere .

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