Roku Preps For IPO
According to a report out of The Wall Street Journal, US streaming player Roku plan to take their company public by the end of 2017.
Citing unnamed sources, they report that the company plans to seek a $1-billion valuation before the year is up.
It’s uncertain how the company will fare in this endeavor, especially given the state of the content streaming market and the mixed success of Snap’s IPO earlier this year.
Reports say the firm is tapping Citigroup, Allen & Co and Morgan Stanley to underwrite the offering.
Roku claims it had generated close to $400 million in revenue in 2016.
Though it competes directly against products like Apple TV, Roku’s video streaming platform does not produce any original content – relying entirely on licensing deals and integration with other streaming services.
The sell to customers is basically that it allows you to access your Netflix, HBO, Amazon and others from within a single interface and remote rather than juggling between them.
A large portion of the company’s revenues then come out of partnership and promotional deals with content providers to give their content prominent placing within the platform.
The company also has a licensing deal in place with TCL that allows the latter to sell Roku built-into select televisions.
This strategy has earned the company some success, however, announcing this week that it has 15 million monthly active accounts.
However, thus far, Roku itself has not been available within the Australian market.
Telstra’s Telstra TV package is essentially a rebadged version of the product – albeit with some restrictions not found in other regions.