Roku prices IPO at $14 per share, valuing company at $1.3B

Roku
Roku stands to raise more than $200 million from its IPO. (Roku)

Roku has officially announced it will price itself at $14 per share as part of its upcoming initial public offering, which is expected to begin trading Sept. 28 under the Nasdaq symbol ROKU.

Roku will issue and sell 9 million shares of Class A common stock and the selling stockholders will sell an additional 6,668,000 shares of Class A common stock, totaling 15,668,000 shares in all. At that price, Roku stands to raise more than $200 million from its IPO.

Roku and the selling stockholders are also giving underwriters a 30-day option to purchase up to an additional 2,350,200 shares of Class A common stock at the same price.

Sponsored by IBM

Webinar: Delighting Viewers with Content: Cloud Enabled Remote Production

Wednesday, June 24, 2020 | 12pm EST / 9am PST
IBM Aspera's multi-cloud roots enables broadcasters to move terabytes of video content at maximum speed, allowing production teams around the world to co-create, untethered by location. Hear how Fox Sports delighted millions of Super Bowl LIV and 2019 FIFA World Cup viewers by producing more content than ever, delivered to viewers across broadcast and web devices alike.

At the $14 per share price, Roku’s market cap comes in at about $1.3 billion.

RELATED: Roku’s $100M IPO depends on further monetizing its platform

Roku earlier this month broke the news of its IPO in an SEC filing detailing the process. Roku is perhaps most notable for its streaming devices that represent less expensive options than pricey Apple TV, but the company is banking on its platform to fuel future growth.

“Our mission is to be the TV streaming platform that connects the entire TV ecosystem. We connect consumers with the content they love. We help content publishers find their audience and make money. We are pushing TV advertising out of the 1940s—when Bulova watches launched the first TV ad—and into the data-driven, machine learning, era of relevant and interactive TV ads. We partner with TV brands and service operators so they can thrive in this rapidly changing ad world,” said Roku CEO Anthony Wood in the company’s SEC filing.

Roku admitted that the majority of the hours streamed on its platform have consisted of subscription video on demand content from partners like Netflix, which contribute little revenue to Roku.

“In order to materially increase the monetization of our platform through the sale of advertising-supported video, we will need our users to stream significantly more ad-supported content,” the company warned in its filing.

To help itself toward that goal, Roku earlier this month announced the launch of its own branded, ad-supported streaming channel.

The Roku Channel, which will be available free to viewers, will feature films from studios including Lionsgate, Metro-Goldwyn-Mayer (MGM), Sony Pictures Entertainment and Warner Brothers, as well as content from existing channel publishers like American Classics, Fandor, FilmRise, Nosey, OVGuide, Popcornflix, Vidmark and YuYu. The new channel is getting a phased rollout over the next few weeks.

Suggested Articles

It’s been almost a year since we last broke down the timeline for price increases at YouTube TV, AT&T TV Now and other virtual MVPDs.

Sling TV is responding to new price increases from competitors YouTube TV and fuboTV by offering its subscribers a one-year rate guarantee.

Peacock has reached a deal with ViacomCBS to carry CBS and Showtime series along with Paramount films when it launches.