Roku Files for IPO, Seeks to Raise $100 Million

Roku CEO Anthony Wood
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Roku has filed for an initial public offering in which it will seek to raise as much as $100 million, according to a document submitted to the Securities and Exchange Commission.

The streaming media company, which makes television set-top boxes and other similar devices, plans to list on the Nasdaq under the ticker symbol ROKU.

The filing also reveals that Roku had 15.1 million active accounts during the second quarter this year, representing growth of 43 percent from the same period last year. The Los Gatos, California, company lost $42.8 million in 2016 and had nearly $399 million in revenue for the same period, up 25 percent from 2015.

Roku says that its users streamed more than 6.7 billion hours of programming on its platform during the first half of 2017, a 67 percent increase in streaming time from the same period a year earlier.

“Our mission is to be the TV streaming platform that connects the entire TV ecosystem,” CEO Anthony Wood said in a letter included in the SEC filing. “I believe that just like mainframe operating systems didn’t transition to PCs, and just like PC operating systems didn’t make the transition to phones…TVs will be powered by a purpose-built operating system optimized for streaming.”

Since launching its first device in 2008, Roku has become a market leader for devices that help people stream content directly through their televisions. The company currently offers a range of set-top boxes and streaming sticks at price points that range from $30 to $110. In addition, it sells connected television sets, Roku TVs, through partners such as TCL and Sharp.

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SOURCE: The Hollywood Reporter, Natalie Jarvey