Netflix wants to take on another $2 billion in debt
CNNNew York CNN Business — Netflix has spent massive amounts of money to build its streaming empire. The money will be used for “general corporate purposes.” Netflix says that could include content acquisitions and production costs, along with other investments. Netflix said last week that it expected negative free cash flow about about $3 billion this year, and its expectations for next year are similar. Moody’s assigned the latest offering a BA3 or “junk” rating, but added that it expects Netflix to eventually be able to pay off its debts “as the transition from licensed content to produced original content levels off and newer international markets begin to contribute to profits and overall margins improve.” The firm said Netflix’s strategy of building out its own original content library has “positive long-term implications,” adding that a library of owned content instead of just licensed content is valuable to both consumers and investors. Moody’s said it could downgrade Netflix even further if its negative cash flow levels continue to be high, or if competition starts eroding the company’s subscriber numbers.
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Netflix to tighten restrictions on password-sharing
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Netflix Hits 200 Million Subscriber Mark, Says It Won't Need External Financing for Daily Operations
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Netflix to raise $1 billion to fund original content
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Netflix To Sell $1 Billion In Bonds After Adding 16 Million New Subscribers
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Netflix is burning through cash. This can’t last forever
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Netflix is raising its subscription prices
CNN
Netflix is selling $2 billion in junk bonds to fund new shows
LA Times
Report: Netflix’s content budget for 2018 balloons to $13 billion
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