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The dramatic failure of Silicon Valley Bank on Friday will have a ripple effect that impacts the entertainment industry.
According to multiple securities filings Friday, a number of companies with connections to the entertainment business had accounts at the bank. With the bank now in a receivership with the Federal Deposit Insurance Corp., any deposits above the $250,000 threshold that the FDIC insures are in jeopardy until the FDIC figures out how to distribute the bank’s assets.
That being said, so far none of the companies involved say that the failure of SVB should have a dramatic effect on their ability to operate.
Arguably the most impacted company so far is Roku, which said that it had $487 million at SVB, more than one fourth of its total cash holdings.
“At this time, the Company does not know to what extent the Company will be able to recover its cash on deposit at SVB,” Roku warned investors. That being said, the company said that the cash it is holding at other financial institutions, as well as its cash flow from operations, “will be sufficient to meet its working capital, capital expenditures, and material cash requirements from known contractual obligations for the next twelve months and beyond.”
Other companies impacted include the video production platform Vimeo, which said it had accounts at SVB. However, it said the total value should be covered by the FDIC. “The Company has a well structured and diverse set of banking partners with no bank holding over 25% of its total cash,” the company said.
And Roblox said that it had about 5 percent of its cash holdings at SVB, which would total about $150 million. “Regardless of the ultimate outcome and the timing, this situation will have no impact on the day to day operations of the Company,” it added.
And FuboTV, the streaming pay-TV operator, filed with the SEC to say that yes, it is aware of SVB’s failure, but that no, it does not have any bank accounts there.
SVB had been America’s 16th-largest bank until it was shuttered on Friday. It specialized in services to startups in and around Silicon Valley.
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