Published: Fri, July 14, 2017
Economy | By Annette Adams

Roku Expects to Launch IPO Before Year-End

Roku Expects to Launch IPO Before Year-End

Roku Inc., the maker of devices and software for streaming services, wants to bring itself to market by the end of the year, according to a report in The Wall Street Journal.

Quoting unnamed sources, CNBC reports that it has hired the investment banks Morgan Stanley and Citigroup to lead the offering. The company could file confidentially in the next few weeks, one of the people said.

The company is reportedly looking for a valuation of $1 billion.

Roku had tested the IPO waters in the past. "We are growing our active accounts by distributing our proprietary TV OS across a broad range of streaming devices with multiple price points and many new and highly rated Roku TV models from our TV brand partners". The Wall Street Journal first reported that Roku had hired underwriters on Thursday. The company announced on Wednesday that it has reached 15 million monthly active accounts, up 43 percent year-over-year, that have streamed almost 7 billion hours in the first half of the year, up 61 percent from the same period last year.

Roku's platform has been open to carrying more TV apps than its peers, including Amazon Prime Video, Hulu and Google Play.

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. Roku had 15 million monthly active users at the end of June, an increase of 43% vs past year.

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