Netflix to borrow billions more to sustain torrid growth

Netflix Plans to Raise $2 Billion in New Debt to Fund Content Spending

The streaming giant on Monday announced plans to raise $2 billion through a bond offering, which will be issued in dollars and euros and take the company's debt past $10 billion for the first time.

Kiernan Shipka, left, and Ross Lynch, cast members in "Chilling Adventures of Sabrina", share a laugh at the premiere of the Netflix series on October 19 in Los Angeles.

SAN FRANCISCO Netflix plans to borrow another $2 billion to help pay for the exclusive series and movies that its management credits for helping its video streaming service reel in millions of new subscribers during the past five years. Netflix needs more cash because it has been spending more money than its business generates since its expansion into original programming with the 2013 release of "House of Cards". For full year 2018, the company expects free cash flow will be closer to -$3 billion than to -$4 billion, and that negative free cash flow in 2019 will be roughly flat with this year.

Once the $2 billion has been issued, Netflix will have $10 billion in long-term debt on its books, up from $8.3 billion... As of September 30, 2018, the company had $18.6 billion of obligations, which includes $10.2 billion due in one year or beyond.

India win Guwahati one day worldwide beating West Indies by 8 wickets
Jadeja said India decided against fielding three spinners because of the uncertainty factor of the wicket. This is their 5th stand of more than 200 and they have achieved this feat twice this year.

The move comes on the heels of Netflix's third quarter report last week, which surpassed analysts' expectations for subscriber growth with 7 million new customers worldwide.

Netflix shares fell more than 2 percent in early-hours trading after the announcement.

"To me it feels a bit like a win-win situation", said John McClain, a high-yield money manager at Diamond Hill Capital, which oversees $22.6 billion including Netflix debt.

Netflix said in April it planned to raise $1.5 billion in debt, after raising $1.6 billion in October a year ago, bringing the total to about $5 billion.



Latest news

Williams Not Settled On Kubica
Claire Williams has confirmed that Robert Kubica is a contender to complete the British team's 2019 driver lineup. This is also why Ocon remains an attractive proposition despite not bringing any backing.

Osaka drawn with 2 other Grand Slam champions at WTA Finals
Svitolina, who only qualified for the season-ending tournament last week, started quickly to capture a break in the opening game. Those two, three games, was probably kind of key to break it or turn it around. "But I'm not gonna watch, just to tell you.

Suspected explosive device found at billionaire's home
Billionaire Soros, an 88-year-old survivor of Nazi Germany-occupied Hungary, made his fortune running a hedge fund. ABC7 Eyewitness News reported that the case has been transferred to the FBI's Joint Terrorism Task Force Division.

Qualcomm announces Snapdragon 675 processor with a focus on gaming
Besides enhancements in gaming , camera and AI performance, the 675 features in improvements in other major areas, as well. We haven't seen a lot of momentum around Quick Charge 4 this year, but that should change in the coming months.

Chris Hemsworth Surprised a Hitchhiker With a Helicopter Ride
Chris Hemsworth has surprised a hitchhiker by giving him a helicopter ride to a beach. "Just landed in Brizzzy", Zocchi said. Some guys just aren't happy until they've acted as superheroes both on and off the screen.

Delivery delays expected as rotating strikes start at Canada Post
But the union says it's trying to minimize the impact on customers with rotating strikes instead of a total service stoppage. The job action began after negotiators failed to reach a new contract agreement before the union's Monday strike deadline.

U.S. pullout from nuclear treaty with Russian Federation also targets China
We're the ones that have stayed in the agreement and we've honoured the agreement. "Until they come to their senses ". If the USA pulls out of the treaty, it's not because there is any need for more weaponry.

Icardi nets late victor in Milan derby
Both teams exhausted as the match went on, with chances becoming less and less frequent, though it was Inter who dominated the ball.

In Surprise Win, 16-Year-Old Dethrones World Tetris Champ
History was made in the Classic Tetris World Championships (CTWC) when a major upset saw a seven-time champion lose to a teenager.

Death Toll in Costa Rica Rafting Accident Includes Four Americans
The large group of friends had arrived in Costa Rica on Thursday and were renting a house in Jacó, according to NBC 6 . Costa Rica has seen heavier than usual rainfall recently, causing the waters in the Naranjo River to rise.

United Kingdom might need to seek a short extension to Brexit transition: May
Conservative legislator Sarah Woollaston tweeted to condemn the "disturbing & violent language" used by some of her colleagues . The PM's official spokesman said May expected those in public life to avoid "dehumanising" and "derogatory" language.

Two Koreas, UN forces agree to remove weapons, guard posts at border
The two sides began removing land mines around the JSA and a mountainous area inside the DMZ near Cheorwon, Gangwon Province. They include setting up air, ground and maritime buffer zones, withdrawing some border guard posts and disarming the JSA.

China to launch ‘SECOND moon’ into orbit by 2020 to illuminate streets
China is poised to launch a moon-like satellite into space with the aim to provide illumination for its urban centers, by 2022. The project was announced by Wu at an innovation and entrepreneurship conference in Chengdu on October 10.

Server gets $10,000 tip from customer who ordered water
Alaina Custer was working at Sup Dogs restaurant on Saturday when a customer ordered two glasses of water then left a $10,000 tip. Oliverio said the server found $10,000 in cash on the table along with a note that said, "Thanks for the delicious water".

Japan’s Devil May Cry 5 Ultra Limited Edition Has Dante’s $8,000 Coat
Which means you'll only need to stick away roughly £321/$420 every week till launch to afford Dante's outerwear. The reservation period runs from today to Monday, November 19, so it'll be open for just about a month.

Other news