Roku files for $100mn IPO to compete in the ongoing streaming war
The streaming war between the likes of Amazon, Sky and Netflix is constantly growing and heating up.
Last month Disney weighed in with the announcement of a streaming service set to be launched in 2019, whilst Netflix bought out comic book maker Millarworld with the intention of grasping a greater portion of the market share with its own-brand productions.
However, most recently, television streaming platform Roku has announced its own ambitions to keep pace with growing competition by filing for an Initial public offering (IPO).
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“We intend to use the net proceeds from this offering primarily for general corporate purposes, including working capital, research and development, business development, sales and marketing activities and capital expenditures,” said Roku, hoping to raise US$100mn on the New York Stock Exchange.
The company may well prove to be an attractive investment, reporting 15.1mn accounts as of June this year, with over 6.7bn hours of stream time by users on the platform to date.
However, despite this, a significant reason for the IPO is due to the fact that the company has been operating at a loss, having accumulated a deficit of $244mn as of June.
“If we fail to differentiate ourselves and compete successfully with these companies it will be difficult for us to attract users and our business will be harmed,” Roku continued.
With competition in the market fierce with many large technology companies focusing on the industry, Roku may still struggle for success like many other companies in the industry, despite the injection that the IPO will provide.
