Today Roku announced that they will sell 1 million shares of Roku stock to help raise money for general corporate purposes. This sale could bring in over $160 million for Roku based on its last reported share price of $160.12.
“We intend to use the net proceeds from this offering, if any, for working capital and general corporate purposes, including sales and marketing activities, research and development activities, general and administrative matters, repayment of debt, other business opportunities and capital expenditures. We may also use a portion of the net proceeds to acquire or invest in businesses, products and technologies that are complementary to our own, although we have no current commitments or agreements with respect to any acquisitions or investments as of the date of this prospectus supplement.” Roku said in its filing to sell the stock.
Recently, Roku has been investing heavily in research, but this money could be used for anything. It is possible Roku plans to buy a company or that Roku wants to invest in growing its business into new markets. But right now there is no way to know. Roku seems to be hoping that its recent strong earnings numbers will help Roku find the buyers it wants to raise the money it’s looking for.
What do you think Roku is planning on doing with this money? Leave us a comment and let us know how you believe Roku will spend this money.