Set-top box maker Roku has started laying out plans to make an initial public offering this year, according a Bloomberg report that cites unnamed sources familiar with the matter.
Roku produces a line of low-cost set-top boxes that allow you to access streaming media services from your TV. Roku’s platform has hundreds of apps from a wide range of streaming services, including Netflix, Hulu Plus, Amazon Prime, Pandora, Spotify, and YouTube. The company also recently forged partnerships with TCL and Hisense to integrate its software platform into a new line of smart TVs.
An exact date for Roku’s IPO hasn’t been determined, and the company hasn’t yet selected a lead banker to handle the offering. However, Roku has apparently reached out to some banks with its plans, according to Bloomberg’s sources.
Roku spokesperson Tricia Mifsud declined to comment to VentureBeat on the company’s future plans to go public.
It makes sense that Roku would be plotting an IPO for many reasons — with one of the biggest being the competition. Both Amazon and Apple are rumored to be debuting new set-top boxes in the near future, while Microsoft and Sony have already launched their next-gen consoles with expanded streaming media features. A public offering could supply Roku with the necessary capital to beef up its own devices while also creating new sources of revenue, such as a Roku-branded digital media store or an expanded software platform for gaming.
VentureBeat has reached out to Roku for comment on its IPO plans, and we’ll update this post with any additional information we learn.
The Saratoga, Calif.-based company has raised a total of $127 million in funding to date.