Roku’s IPO price values it at $1.3 billion


Business News - Opportunities - Reviews


5 stunning stats about Netflix

Roku is hoping investors tune in to its initial public offering.

The streaming device company said late Wednesday that it intends to sell $219 million of shares, priced $14 each. That would value Roku (ROKU) at $1.3 billion when it debuts in New York on Thursday.

It will list on the Nasdaq under the ticker symbol “ROKU”.

The company is poised to capitalize on the popularity of streaming content. More than 60% of 18- to 29-year-olds say they watch TV primarily through online streaming, according to a survey released by the Pew Research Center this month.

The boom has spurred traditional outlets like Disney (DIS) and tech giants like Amazon (AMZN, Tech30) to invest heavily in streaming services.

Related: Roku is planning to file an IPO

Roku set-top boxes and dongles offer users access to free channels like YouTube, subscription channels like Netflix (NFLX, Tech30) and cable channels like HBO. (Like CNN, HBO is part of Time Warner (TWX).)

In its filing to the U.S. Securities and Exchange Commission earlier this month, the company said it has 15.1 million active accounts as of June 30.

Roku users streamed more than 6.7 billion hours on the platform in the first six month of this year, the company said, up 62% from the same period in 2016.

Roku said it generated $199.7 million in revenue in the six month ended June 30. In fiscal year 2016, it generated $398.6 million in revenue, an increase of 25% from 2015.

Danielle Wiener-Bronne contributed to this report.

CNNMoney (Hong Kong) First published September 28, 2017: 3:42 AM ET


Business News - Opportunities - Reviews



Leave a Reply