Home Business News Netflix to raise $2bn to fund original shows

Netflix to raise $2bn to fund original shows

by Purvai Dua
22nd Oct 18 3:06 pm

Netflix has announced plans to raise about $2bn as it aims to invest heavily in original shows and acquiring content to fend off growing competition. The new debt will be in the form of US dollars and euros.

“We recognize we are making huge cash investments in content, and we want to assure our investors that we have the same high confidence in the underlying economics as our cash investments in the past,” Netflix said in a recent letter to shareholders, adding: “These investments we see as very likely to help us to keep our revenue and operating profits growing for a very long time ahead.”

The streaming giant had announced in April that it planned to raise $1.5bn in debt, after raising $1.6bn in October last year, bringing the total to about $5bn.

“The short balance in the actual bonds reflects a view that (the bonds) will decline in value if or when they issue more debt,” said Samuel Pierson, analyst at IHS Markit.

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