ref="http://www.cityam.com/company/netflix">NETFLIX, the US video rental company, has sold $400m (£255m) in stock and convertible bonds to boost its war chest.
The move comes after a difficult three months that saw the company’s shares fall more than 70 per cent.
The capital raising is split into two parts: selling convertible debt to long-time backer Technology Crossover Ventures and stock to funds managed by T Rowe Price.
Netflix estimates that it will spend $3bn next year buying the rights to TV shows and movies.
Wall Street analysts moved to slash their forecasts for Netflix following the capital raising and a warning that the firm expects a loss in 2012.
The company, which had $159.2m in cash and cash equivalents at the end of September, has struggled to renegotiate video content deals and has lost over a million customers since summer.