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.
Google announced it will be updating its privacy restrictions that will limit tracking throughout apps on android devices. The update is similar to Apple's previous update, which ended up causing companies like Meta to lose billions of dollars on the market. Cheddar News was joined by David Trainer, CEO of New Constructs, to discuss the implications of the new privacy updates.
Global semiconductor sales topped $500 billion dollars for the first time in history in 2021. Demand for microchips has been at an all-time high amid a global shortage, but questions still remain about the future of semiconductor production. Cheddar News was joined by Tristan Gerra, Senior Research Analyst at Baird, to answer some of these questions and more.
Compass Inc. reported its Q4 earnings on Wednesday, noting a 31 percent surge in quarterly revenue year over year. The real estate brokerage platform allows agents to promote and market their properties online and saw a 90 percent agent retention rate as well. Compass CEO Robert Reffkin joined Cheddar News to discuss the company's earnings, what ongoing inflation means for the housing market and how they help agents directly. "Let me start by saying my mom is actually a real estate agent, has been the majority of my life. She's a real estate agent today at Compass, and so I built Compass with her in mind," Reffkin said. The goal for an agent is to grow their business and have a better quality of life, more income to support their family, more time to be with their family, and it's not just software. It's a platform of software and services."
While many are excited to watch the final two NFL teams square-off and see which one ultimately takes home the trophy, some, on the other hand, are there for another mian attraction -- the commercials. Companies during this year's game are looking towards the future From electric vehicles, to robots, and crypto-currency, several first-time advertisers are expected to join long-time advertisers like Pepsi, Budweiser and Doritos during the NFL's biggest game. Tom Morton, Global Chief Strategy Officer at R/GA, joined Cheddar News' Big Game Special to discuss.
Nissan is revving up its commitment to electric vehicles. the Japanese automaker announcing plans to invest $500 million to transform its assembly plant in Mississippi to build two all-new EV models starting in 2025. It's all part of Nissan's goal to have 23 electrified models for the Nissan and Infiniti brands globally by 2030. Ashwani Gupta, Nissan's COO, joined Cheddar's Opening Bell to discuss this announcement and the company's EV goals moving forward.
Cepton made its debut on the Nasdaq under the ticker symbol ‘CPTN’ on Thursday. Jun Pei, the co-founder and CEO, joined Cheddar News to discuss going public and its lidar-based solutions for improving safety in autonomous features in cars. "It's really just a huge benefit in addition to radar and camera, and becomes an entire sensor suite that will bring cars to a higher level, both for safety and autonomy."
New York City's famous subway system is currently facing scrutiny after several recent attacks on platforms. Now, local leaders in the Big Apple are calling on the MTA. To step in and take action.
On this episode of Cheddar Innovates: Evolution Devices CEO breaks down how the Evowalk wearable device can help those with walking impairments; Cresilon CEO explains how he's created a plant-based gel to easily treat wounds in both humans and animals; A look at Curiosity Stream's 'The Colorado Problem.'
