Monday 21 October 2019 5:07 pm

Netflix to sell a further $2bn in bonds as it builds up war chest

Netflix has announced plans to sell roughly $2bn (£1.5bn) worth of bonds as it launches a final push for cash before the onslaught of new streaming rivals.

The on-demand video giant said it will issue the bonds in both euros and dollars and will negotiate terms such as interest rate and maturity date with buyers.

Read more: Netflix shares rise as it beats profit expectations ahead of streaming wars

Netflix said it will use the proceeds of the sale for “general corporate activities”, including content acquisitions, production and development.

The firm has previously used bond sales to help raise funds for original content, as it looks to build up its catalogue of exclusive films and TV shows and reduce its reliance on licensed programming. A similar $2bn bond sale was announced in April.

The latest sale will likely be the company’s last before the arrival of new streaming services from rivals Apple and Disney, which are both due to launch in November.

The onset of fierce competition in the increasingly-crowded streaming market is expected to pose a tough challenge for Netflix, which currently holds a market-leading position with more than 150m subscribers.

Read more: Netflix gets €57,000 tax rebate in the UK as binge-watching boosts profit

The streaming giant last week posted third-quarter profit ahead of market expectations, but fell short of its own forecasts for subscriber additions.

Earlier this year Netflix chief financial officer Spencer Neumann said the company would not use debt markets to fund its cash flow “forever” as it was moving towards a “self-funding path”.

Main image credit: Getty

Share


Tags: