A Roku initial public offering (IPO) could be arriving sooner rather than later, the company unveiled to end the week.
The online streaming service box announced that it is looking to go public, seeking a $1 billion valuation for the company. The company has hired Morgan Stanley (NYSE:MS) and Citigroup Inc (NYSE:C) to help it explore the possibility of launching an IPO.
The move comes as Roku shifts towards a business model with higher-margin advertising and licensing revenue. The service carries plenty of other streaming services, including Amazon Prime Video, Hulu and Google Play.
In its last fiscal year, Roku raked in $400 million in revenue, the company revealed in its February earnings call. About $100 million came from its media and licensing segment.
As of June 30, 2017, the company has 15 million monthly active accounts that streamed video in the last 30 days. This figure made up almost half of all over-the-top streaming devices in the U.S. last year, according to data compiled by market research firm comScore.
Roku has unveiled paid advertising options for its streaming partners, netting Roku a piece of the advertising revenue for the apps on its services. The over-the-top streaming device also licenses its software to other companies such as Hitachi, giving it the option of making televisions with its services built into the TV.