The Biden administration took drastic measures that will save Roku and all of the other creditors at the Silicon Valley Bank billions in combined financial assets. The Bank, which backed a number of startups and tech firms was taken over by the FDIC last week after a run on the bank threatened to take down the entire bank.
Roku could have lost over 470 million dollars had the government not stepped in with a plan meant to settle down the banking industry in the face of an issue that may have caused nationwide panic similar to the 2008 financial crash that caused the great recession.
At the time Roku expressed confidence that it would weather the storm which could have cost it 25% of its cash telling Engadget “As stated in our 8-K, we expect that Roku’s ability to operate and meet its contractual obligations will not be impacted and we continue to have access to $1.4 billion in cash and cash equivalents which are distributed across multiple, large financial institutions,”
But as a second bank began to shake at its foundations in the wake of the SVB failure the government moved to stop the dominos that appeared to be lining up.
