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The Markets
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The Markets
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Tech

Roku shares surge as it debuts in New York; raises US$219mln

The video-streaming firm sold 15.7mln shares at US$14 each; at the upper end of what it had expected

Roku Inc (NASDAQ:ROKU), the video-streaming firm backed by Fox, saw shares jump around 50% when it made its debut in New York.after it raised US$219mln in an intital public offering that was priced towards the upper end of what it had expected.

The company issued 15.7mln shares at US$14 apiece, giving Roku a market capitalisation of around US$1.32bn.

Roku was one of the first to manufacture a device that could stream services such as Netflix over TVs.

The market has become more crowded in recent years though: Apple Inc (NASDAQ:AAPL) has its own Apple TV device while Amazon.com Inc (NASDAQ:AMZN) has its Amazon Fire stick.

In order to compete with those industry giants, California-based Roku has extended the number of apps that can be streamed through its platform.

Amazon Prime video, Hulu and Google Play all feature giving its customers access to more than 3,000 channels around the world.

Roku makes money by licensing its technology to companies such as Sharp and Hitachi and takes a cut of the advertising revenue from media companies on its platform.

In the six months ended 30 June, Roku had just over 15mln active accounts although (like most young tech firms) it recorded a loss for April-June quarter of US$15.5mln as it invests heavily in developing and marketing its software.

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