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.
A magazine journalist’s account of being added to a group chat of U.S. national security officials has raised questions about the Signal app.
The next time you get a call about an upcoming medical appointment you may not be talking to a human. Hospitals are increasingly using AI assistants.
Schools are turning to AI-powered surveillance technology to monitor students on school-issued devices like laptops and tablets. But there are risks.
Hours after a series of outages that left X unavailable to thousands of users, Elon Musk is claiming that the social media platform is being targeted in a “massive cyberattack." Musk said on a post Monday that the attacker is either a large, coordinated group or a country. Complaints about outages spiked Monday at 6 a.m. Eastern and again at 10 a.m, with more than 40,000 users reporting no access to the platform, according to the tracking website Downdetector.com. A sustained outage appeared to begin just after noon Eastern.
The World Video Game Hall of Fame has revealed its 12 finalists for 2025. Members of the public have a week to vote for their favorites online.
An insider account being billed as an “explosive” memoir about “seven critical years” at Facebook/Meta will be published next week.
Extinction is still forever. But scientists at a biotech company are trying what they say is the next best thing to restoring ancient beasts.
The typically tight-lipped CIA is peeling back the curtain on some of its secrets with an upcoming presentation at South By Southwest festival.
Melania Trump says it’s “heartbreaking” to see teens grapple with the fallout after they’re targeted by malicious and sexually explicit online content.
A woman is suspected in a string of vandalism against a Colorado Tesla dealership that included Molotov cocktails thrown at vehicles.
