Internet TV provider Roku is planning an IPO for this year, sources tell TechCrunch.
Confirming an earlier report by the Wall Street Journal, sources tell us that Morgan Stanley, Citigroup and Allen & Co. have been selected as underwriters for the offering. The company is said to be seeking a $1 billion market cap in the public markets.
Roku has been able to capitalize on the cord-cutting trend, where many people, especially millennials, have opted not to pay for cable television. Instead, they are accessing content on digital platforms like Roku, Apple TV, Google’s Chromecast, Amazon’s Fire TV and others.
This week the company revealed that it had reached 15 million monthly active users and 7 billion hours streamed, just in the first half of this year. This compares to 13 million monthly actives last year and 43% fewer hours streamed in the first half of 2016.
Roku is likely hoping that this top line growth will appeal to public investors, but we have yet to see their full financial picture. The company can keep these details private until 15 days before their investor roadshow, due to a provision in the JOBS Act.