The dramatic failure of Silicon Valley Bank on Friday will have a ripple effect affecting the entertainment industry.
According to multiple securities filings on Friday, a number of companies with connections to the entertainment business have accounts with the bank. With the bank now in receivership with Federal Deposit Insurance Corp. However, any deposits over the $250,000 threshold insured by the FDIC are at risk until the FDIC figures out how to distribute the bank’s assets.
However, none of the companies involved have yet said that the failure of the SVB should have a significant impact on their ability to operate.
Arguably the company most affected so far is Roku, which said it had $487 million in SVB, more than a quarter of its total cash holdings.
“At this time, the company does not know how far the company will be able to recover its funds held in SVB,” Roku warned investors. However, the company said that the cash it holds at other financial institutions, as well as cash flow from operations, “will be sufficient to meet working capital, capital expenditures, and physical cash requirements from known contractual obligations for the next twelve months and beyond.”
Other affected companies include video production platform Vimeo, which said it had SVB accounts. However, he said the total value should be covered by the FDIC. “The company has a well-organized and diversified group of banking partners, and no bank owns more than 25% of the total cash,” the company said.
Roblox said it has about 5 percent of its cash holdings in SVB, which would total about $150 million. She added, “Regardless of the final outcome and timing, this situation will not have any impact on the company’s day-to-day operations.”
And FuboTV, the pay TV broadcaster, has filed with the SEC to say yes, it is aware of the SVB failure, but no, it does not have any bank accounts there.
SVB was the 16th largest bank in America until it closed on Friday. She specializes in servicing startups in and around Silicon Valley.
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