Netflix to raise $2 bn debt for content: Reports
The streamer will reportedly use the fund for content acquisitions, production and development, capital expenditures, investments, potential acquisitions
Streaming giant Netflix plans to raise $2 billion in debt for original content as it prepares to take on competition from the likes of Disney and Apple, according to media reports.
Netflix will reportedly use the fund for content acquisitions, production and development, capital expenditures, investments, potential acquisitions and other purposes.
In its quarterly letter to shareholders, CEO Reed Hastings wrote that Netflix will continue to finance its capital needs in the high-yield market.
Commenting on the competition, Netflix in the letter mentioned, “The upcoming arrival of services like Disney+, Apple TV+, HBO Max, and Peacock is increased competition, but we are all small compared to linear TV,”
“While the new competitors have some great titles (especially catalogue titles), none have the variety, diversity and quality of new original programming that we are producing around the world. The launch of these new services will be noisy. There may be some modest headwind to our near-term growth, and we have tried to factor that into our guidance,” it said.
This is the third time that Netflix will be raising funds in debt in the recent past. It reportedly raised $1.6 billion in April this year and $1.9 billion in November 2017.For more updates, be socially connected with us on
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