Roku set for IPO

Investors who want to bet on the future of streaming TV may soon have a new opportunity to do so: Roku is weighing an IPO that could value the company at $1 billion, the Wall Street Journal reports.

Roku is said to have hired Morgan Stanley to lead the IPO, along with Citigroup and Allen & Co.

The Journal said according to sources, the offering could come before the end of the year and that preliminary documents for an offering could be filed in the next few weeks.

The company said in February that it generated $400 million in revenue previous year, with $100 million in its media and licensing segment. With births declining and immigration slowing, population growth in the USA has stalled.

Roku made one of the first devices to offer streaming Internet content such as Netflix over TVs, but the market has since become more competitive, with Apple Inc, Alphabet Inc's Google, Inc and others offering their own devices.

Roku has unveiled paid advertising options for its streaming partners, netting Roku a piece of the advertising revenue for the apps on its services.

Earlier this week, Roku y announced it reached 15 million monthly active accounts, up 43% annually.

Roku, the Los Gatos-based seller of devices and software that let you stream online entertainment to your TV, is getting ready to go public, according to multiple reports. It also licenses its software to companies including Sharp and Hitachi, allowing them to make smart TVs with built-in Roku streaming.

Vanessa Coleman