Netflix formally announced today that it will raise $400 million in new debt to fuel international expansions, specifically in Europe, as well for other expenditures, including investments, acquisitions, and reportedly, more original content, too. The company will raise the money by offering institutional investors 10-year senior notes – something it had first disclosed during last month’s Q4 2013 earnings.
At the time, Netflix said it planned to significantly expand its footprint in Europe later this year, but didn’t say where that expansion would happen. In today’s brief announcement, Netflix says that the additional principal will be used for “general corporate purposes, including capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”
However, Variety is reporting that funding original content is also one of its intended use cases, citing Netflix’s 10-K annual report filed on Monday with the SEC where the company notes its plans to “significantly increase our…
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