After Silicon Valley Bank failed, Roblox will get about $150 million in compensation. This happened after the US Federal Reserve promised to help all SVB customers, even big companies like the Roblox Corporation that like to stir up trouble.
Roblox had 5% of its value in SVB, which is now in the news because it is the second-largest bank to fail in US history. Even though a company’s deposits in SVB were only a small part of its business, it was one of the many customers that made up SVB’s almost $210 billion in assets. The government will pay for $175,4 billion of those assets.
Govt’s Usual Limit For Bailouts Is $250,000
Kotaku said that the Federal Reserve will give Roblox $150 million, even though the government’s usual limit for bailouts is $250,000. Roblox and the other customers of SVB are obviously getting back a lot more of this because they are.
But this comes at a time when Roblox seems to be in the news for all the wrong reasons all the time. The game that the company runs is always in the news, whether it’s because most of the players are children running a “criminal underworld” to scam each other or because games that support terrorism have been found on the platform.
That doesn’t even get into the bigger issue of how Roblox works, which is to make money off the games made by other people who use its service. In the past few years, the company has been criticized for not paying enough to the users who make Roblox fun to use, though sometimes it’s not the company itself that gets blamed.
Just recently, we talked about the Sonic Roblox game Sonic Speed Simulator, which has even worked with Sega in the past. Even so, some developers said that their bosses made them work too much and didn’t pay them enough. Some also said that they were fired right before the holidays last year, giving them little time to find work.
At the time of this writing, it doesn’t look like Roblox has said anything in public about the money it got from the government.
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