AAA Roku schedules $100m offering

Roku schedules $100m offering

Roku, a US-based media streaming software and device maker backed by media conglomerates Hearst and News Corp, filed for a $100m initial public offering on Friday.

The company is seeking a listing on the Nasdaq stock exchange. Reports of an initial public offering first emerged in mid-July, though the company had reportedly already considered a flotation in 2014, when it secured $25m from unnamed backers. 

Founded in 2008, Roku markets a set-top box that allows consumers to stream free and premium content to their TV. The company has also partnered a range of manufacturers to integrate its software directly into television sets.

The company claims to stream a total of 3.5 billion hours of content per quarter, with its userbase standing at 15.1 million accounts.

Roku has raised at least $210m in funding, though there were reports in February 2016 that the company had added an additional $45.5m to its arsenal. The company however only confirmed it had raised capital in late 2015, without providing additional details.

Mass media company Sky UK and News Corp first participated in Roku’s $45m series E round in 2012 alongside Menlo Ventures, Globespan Capital and one unnamed investor.

Both corporates returned in 2013 to take part in a $60m round led by financial services conglomerate Fidelity, with participation from Hearst. Online streaming platform Netflix is reportedly also an investor in Roku.

Roku’s regulatory filing reveals News Corp’s 7% stake is now held by mass media company 21st Century Fox. The company is the entertainment and media spinout of News Corp, which completed a restructuring in 2012 and essentially split itself into two businesses.

Menlo Ventures is the company’s largest external shareholder with 35.3%, followed by Fidelity with a 12.9% stake. Finally, Globespan owns 6.1% of shares.

Morgan Stanley and Citigroup Global Markets are acting as representatives of the underwriters, which also include Allen & Company, RBC Capital Markets, Needham & Company, Oppenheimer & Co and William Blair & Company.

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