Roku, a US-based media streaming software and device maker backed by media conglomerates Hearst and News Corp, is preparing to float by the end of 2017, the Wall Street Journal reported yesterday, citing unnamed individuals.
The company is said to have hired investment banks Morgan Stanley, Citigroup and Allen & Co as underwriters for the initial public offering, which could fetch a valuation of up to $1bn. Roku has not confirmed the reports, but could file confidentially within weeks.
Founded in 2008, Roku produces a set-top box that customers use to stream free and premium content to their TVs. The company also partners hardware manufacturers to integrate its software into their television sets.
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.
Roku had reportedly considered an initial public offering in 2014, when it secured $25m from unnamed backers.
Telecommunications and pay TV company Sky UK (then known as BskyB) and News Corp, which holds a controlling stake of nearly 40% in Sky, first backed Roku’s $45m series E round in 2012 alongside Menlo Ventures, Globespan Capital and one undisclosed investor.
Both corporates returned the following year to participate 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.