Roku Hires Investment Banks, IPO Set for 2017

Reports indicate that the company has reached out to Morgan Stanley and Citibank to lead the IPO. 

9

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.

CEO

Asif Khan is the CEO and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.

From The Chatty

  • reply
    July 14, 2017 3:15 PM

    Asif Khan posted a new article, Roku Hires Investments Banks, IPO Set for 2017

    • reply
      July 14, 2017 4:48 PM

      Tempting.

      • reply
        July 14, 2017 5:18 PM

        Yeah, I am intrigued. I am also surprised they haven't been acquired.

        • reply
          July 14, 2017 5:36 PM

          I kind of wonder how they grow and diversify their business though. What can Roku do that would give them a new push?

          They'd be an awesome acquisition, and there's a part of me that questions whether or not this is a move to pump themselves even higher in advance of trying to court a merger.

        • reply
          July 15, 2017 3:52 AM

          Could give you a little insight. We're in the midst of developing an app for a very recognized client with rokus new design guidelines. They have a 25 day review process for apps. Apple gets back to us in 48 hrs.

          also their new design guidelines are garbage

    • reply
      July 14, 2017 5:20 PM

      I love their devices. So simple, fast , and easy to use.

      Hopefully they don't change with the IPO.

      • reply
        July 14, 2017 6:52 PM

        Yeah, I'm really impressed with how well their stuff works. I've got a 3 and a bunch of Fire Sticks and he 3 is miles better.

        • reply
          July 14, 2017 7:33 PM

          I just bought a premier+ tonight. They sent me a $40 off coupon.

          Looking forward to trying it out.

      • reply
        July 15, 2017 9:20 AM

        a lot of employees might jump ship post ipo

        really just depends whether they can retain the folks who defined the product historically

    • reply
      July 14, 2017 5:31 PM

      I remember when I bought in on GoPro IPO because their name was as universal as Coke, being used for products that weren't even their products.

      Got out in 2015 with skin still on me, but holy hell did that scare me off recognizable, useful, in home tech IPOs.


      It's like me trying to decipher Under Armor after the split. WHAT ARE YOU DOING?! STOP BLOWING MY MONEY ON NURSE SHOES AND DISCOUNT STORES AND CROWDED WEARABLE TECH FITNESS!

      Keep making the wickable shirts and shorts though, I need my balls cool.

      • reply
        July 14, 2017 5:40 PM

        well you had no actual investment strategy it seems like...

        • reply
          July 14, 2017 5:53 PM

          Don't act like that was the only reason. It had a lot of revenue, profits getting better as production lines got cheaper, mid teens P/E looked promising...

          I didn't expect their products to be so durable that everyone that wanted one already had one before 2015 and had no need to replace the one they had.

          Chinese dirt cheap alternatives... I really thought the name ubiquity would insulate from that.

    • reply
      July 14, 2017 7:11 PM

      I look forward to shittier hardware and UI due to that sweet, sweet Shareholder Value.

    • reply
      July 14, 2017 8:05 PM

      I remember the days of 2006 when there was like 3 IPO's a day in Silicon Valley. I was working at a Printer on one and it was a lot of reading revisions and checking numbers from the auditing side for a life science/medical device company. The Printer was a neat place where it was a blend of high end copier, hotel, and conference center. The food was catered and great. If you wanted Starbucks they had a guy who would make runs for everyone.

      Then once we finished we all went with the company C staff to a Steakhouse in Los Gatos and I had the most expensive dinner probably of life. Six course meal I remember and at the end we all took shots if whiskey that was at least $75 a shot.

    • reply
      July 14, 2017 8:07 PM

      I love my roku tv. Might have to look I to this. I wonder if they're actually profitable right now.

    • reply
      July 15, 2017 6:05 AM

      Having just bought a Roku for the downstairs media room area, and replacing an old TV with a small 4k Roku TV, this sounds pretty cool. I really like their gear.

    • reply
      July 15, 2017 7:16 AM

      Someone I know just started working there as an intern. I'm slightly jealous, plus it's in Austin where the weather > Seattle weather.

    • reply
      July 15, 2017 8:04 AM

      I had no clue Roku was that big a deal.