Netflix Raising $1B In Debt To Invest Big In Content Acquisitions And More

TechCrunch

As streaming video competition continues to grow between Netflix, Amazon, Google, Facebook and others, one of the leaders of the pack is planning to invest big in content acquisitions and investments to stay up front. Netflix today said it plans to offer $1 billion in senior notes and plans to use the proceeds for “general corporate purposes, which may include content acquisitions, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”

Markets are not entirely thrilled with the move. Netflix’s stock is trading down slightly, and S&P has downgraded the company’s debt rating to B+ from BB-. “We view Netflix’s business risk profile as ‘fair,’ reflecting the company’s leading position in the increasingly competitive and rapidly evolving online video service and its large subscriber base,” its analysts write. “However, Netflix remains dependent on movie and TV studios for content, and we expect the company to increase its investments in original programming…

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