Fallout from Silicon Valley Bank (SVB) collapse so far seems to be contained but the bank failure has had some ramifications for businesses with deposits at the financial institution.
Roku was among those impacted, having around 26 percent of its cash and cash equivalents deposited at the bank. Around $487 million of its total $1.9 billion was in limbo before the government stepped in and said that the bank's clients would be able to recover their deposits in full.
News of the collapse initially plunged Roku's stock by as much as 9.2 percent on Monday, but it rebounded after President Joe Biden said the FDIC would protect impacted customers.
"First, all customers who had deposits in these banks can rest assured … they'll be protected and they'll have access to their money as of today," Biden said in a statement. "No losses will be borne by the taxpayers. Instead the money will come from the fees that banks pay into the Deposit Insurance Fund."
Even without the FDIC backing, Roku indicated to Cheddar News from SXSW that it had enough cash on hand to stay afloat.
"So we filed an 8-K and that's really the totality of our public statement right now. In it, we did say that we're confident that we have the cash balances to meet all of our obligations. That's our public statement right now," Julian Mintz, co-head of U.S. brand sales at Roku, said.
In an effort to avoid a potential financial crisis, global banking leader HSBC acquired SVB in the UK in order to protect a swath of British tech companies.
Meanwhile, the Federal Reserve announced on Monday that it is currently reviewing its own part in overseeing the failure of Silicon Valley Bank and it would have a report by May 1.
Constituent service platform Indigov recently raised $25 million in a Series B funding round. Indigov bills itself as a constituent relationship management tool that helps elected officials improve the way they organize, respond to, and engage those they serve. The startup's services are being used by federal, state, and local governments across the country, including the U.S. House of Representatives. Alex Kouts, founder & CEO of Indigov, joins Cheddar News' Closing Bell to discuss.
The 2022 NBA playoffs are intensifying as four teams vie for an NBA finals berth. Tonight, Stephen Curry and the Golden State Warriors can book their finals ticket with a win over the Dallas Mavericks, while Miami will be feeling the 'heat' tomorrow night, facing elimination against the Boston Celtics.
And with the growing popularity of sports betting, the NBA playoffs offers a potential money-making opportunity for fans. Trysta Krick, host of BetMGM Tonight, joins Cheddar News' Closing Bell to discuss.
Snap stock saw the worst day ever after a large drop in price on Tuesday following warnings of revenue and earnings slowdown. This trend caught on with other social and digital media stocks due to fears that brands heavily relying on advertising get hit with the same inflation struggles. However, some analysts note that Snap may be a unique case due to a rapid, possibly unsustainable, expansion leading to the current grim forecast.
From Meta’s Oculus to PlayStation’s VR headsets, Cheddar News anchors Ken Bufa and Kristen Scholer cover the potential for this tech in Cheddar Connected as more heavy hitters like Apple look to take the stage.
Umbilical cord blood banking platform Anja Health raised $4.5 million dollars in a seed round led by Seven Seven Six, a venture capital firm founded by Reddit co-founder Alexis Ohanian. Anja Health offers a personalized, doctor-backed cord blood bank, which lets new parents freeze stem cells from their child's umbilical cord so they can be used to treat diseases in the future. It's a process Anja has called 'Hollywood's best-kept secret,' as celebrities like Kylie Jenner, Serena Williams, and more have all banked their umbilical cord blood. Kathryn Cross, the founder of Anja Health, joins Cheddar News' Closing Bell to discuss.
