Internet TV company Roku has reportedly hired several investment banks to prepare for an IPO later in 2017. Reports are that the company will be seeking more than a $1 billion valuation for Roku.
It remains to be seen how investors will respond to the offering. Roku was one of the first companies to bring a set-top box to market that was capable of streaming video. Millions of customers have cut the cord and now consume their video from Roku, Apple, Google, and Amazon devices.
Roku was rumored to have prepared a confidential filing in 2014. This new registration document will account for a change in Roku's business model towards higher-margin advertising and licensing revenue, said a source close to the company. Citibank and Morgan Stanley have yet to confirm the news.
Roku had 15 million monthly active users as of June 2017. It accounted for nearly 50% of all over-the-top streaming devices in the United States last year, according to market research firm comScore. In February, Roku reported sales of $400 million for 2016, with no mention of profitability.
It remains to be seen if Roku will be a tech IPO hit or dud, and we will take a deeper dive into the company's financial results when they file their Form S-1 with the SEC.