Fresh off a gangbusters earnings report, Netflix is asking investors to bet on it again: The streaming video company is raising money that it may use to invest in its own TV shows. Netflix says it intends to raise $400 million in debt, and will use $225 million of that money to refinance some of its existing notes. The company says it will use the remainder for “general corporate purposes, including capital expenditures, investments, working capital and potential acquisitions and strategic transactions.” But in his quarterly shareholders’ letter last week, Reed Hastings was more concise about what he planned to do with the money: It would be used for “additional reserves as well as increased flexibility to fund future originals.” Netflix already has a slate of five original series announced, including “House of Cards,” the $100 million Kevin Spacey production that premieres on Friday.
Netflix Wants to Raise More Money for Original Programming
Author: Shelly Palmer
Shelly Palmer is Fox 5 New York's On-air Tech Expert (WNYW-TV) and the host of Fox Television's monthly show Shelly Palmer Digital Living. He also hosts United Stations Radio Network's, Shelly Palmer Digital Living Daily, a daily syndicated radio report that features insightful commentary and a unique insiders take on the biggest stories in technology, media, and entertainment. He is Managing Director of Advanced Media Ventures Group, LLC an industry-leading advisory and business development firm and a member of the Executive Committee of the National Academy of Television Arts & Sciences (the organization that bestows the coveted Emmy® Awards).