Roku Is Looking to Raise Up to $500 Million

Following its first-quarter earnings release last week, streaming TV platform Roku (NASDAQ: ROKU) is now looking to raise approximately $500 million in fresh capital. In regulatory papers filed yesterday, the company said it had entered into an equity distribution agreement with Morgan Stanley and Citigroup to sell up to 4 million shares in an "at-the-market" offering.

The deal is not a secondary offering open to public investors; an equity distribution agreement is a type of private placement. Here's what investors need to know.

Image source: Roku.

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Source Fool.com