OT: Netflix to Raise Another $2 Billion Through Debt to Fund

[Deleted]

Netflix to Raise Another $2 Billion Through Debt to Fund Massive Content Spending

Netflix, burning boatloads of cash with a projected $15 billion content budget for 2019, is adding to its debt load once again.

On Monday (Oct. 21), Netflix announced plans to offer approximately $2.0 billion aggregate principal amount of junk bonds, in both U.S dollar and euro denominations.

As of Sept. 30, Netflix reported $12.43 billion in debt, up from $10.36 billion at the end of 2018. The latest proposed debt offering would be the eighth time in the last five years that Netflix is raising $1 billion or more through debt. The streaming giant last raised $2.2 billion in junk bonds in April 2019.

Netflix continues to spend billions on programming, as it faces a wave of new streaming rivals coming to market including Disney, Apple, WarnerMedia and NBCUniversal. Netflix needs the funding to cover a content budget projected to be $15 billion in 2019 on a gross-cash basis. Last week, in announcing third-quarter 2019 results, Netflix told investors that it planned to raise more debt. For the full year 2019, the streamer expects free cash flow to be negative $3.5 billion (versus $3.0 billion last year).

As long as we get another season of Grace and Frankie, I don't care how much money they borrow.

[ArArArchStanton]

Oct 21, 2019 17:42:28 GMT -6 @lorddeathman said:

Netflix to Raise Another $2 Billion Through Debt to Fund Massive Content Spending

Netflix, burning boatloads of cash with a projected $15 billion content budget for 2019, is adding to its debt load once again.

On Monday (Oct. 21), Netflix announced plans to offer approximately $2.0 billion aggregate principal amount of junk bonds, in both U.S dollar and euro denominations.

As of Sept. 30, Netflix reported $12.43 billion in debt, up from $10.36 billion at the end of 2018. The latest proposed debt offering would be the eighth time in the last five years that Netflix is raising $1 billion or more through debt. The streaming giant last raised $2.2 billion in junk bonds in April 2019.

Netflix continues to spend billions on programming, as it faces a wave of new streaming rivals coming to market including Disney, Apple, WarnerMedia and NBCUniversal. Netflix needs the funding to cover a content budget projected to be $15 billion in 2019 on a gross-cash basis. Last week, in announcing third-quarter 2019 results, Netflix told investors that it planned to raise more debt. For the full year 2019, the streamer expects free cash flow to be negative $3.5 billion (versus $3.0 billion last year).

As long as we get another season of Grace and Frankie, I don't care how much money they borrow.

When you start borrowing like that, your days are numbered.  In 10 years Netflix will be the Blockbuster of the 2000's, that we'll all be trying to explain to kids what it even was.

[WeirdRaptor]

Oct 21, 2019 21:14:46 GMT -6 ArArArchStanton said:

Oct 21, 2019 17:42:28 GMT -6 @lorddeathman said:

Netflix to Raise Another $2 Billion Through Debt to Fund Massive Content Spending
As long as we get another season of Grace and Frankie, I don't care how much money they borrow.

When you start borrowing like that, your days are numbered.  In 10 years Netflix will be the Blockbuster of the 2000's, that's we'll all be trying to explain to kids what it even was.

"Man, I miss 'Netflix and Chill'."
"Mommy, what's that?"

[ArArArchStanton]

Oct 21, 2019 21:17:39 GMT -6 WeirdRaptor said:

Oct 21, 2019 21:14:46 GMT -6 ArArArchStanton said:

When you start borrowing like that, your days are numbered.  In 10 years Netflix will be the Blockbuster of the 2000's, that's we'll all be trying to explain to kids what it even was.

"Man, I miss 'Netflix and Chill'."
"Mommy, what's that?"

You know what's sad? My wife had to explain to me what Netflix and Chill even meant last night. I'd never heard that phrase before. I mean it's straight forward, but she said it like it was this common phrase, which I guess it is, but you are only the 2nd person I've ever heard say it, and that's just in the past 2 days. Never heard it before. I'm that out of touch lol

[WeirdRaptor]

Oct 21, 2019 21:21:34 GMT -6 ArArArchStanton said:

Oct 21, 2019 21:17:39 GMT -6 WeirdRaptor said:

"Man, I miss 'Netflix and Chill'."
"Mommy, what's that?"

You know what's sad? My wife had to explain to me what Netflix and Chill even meant last night. I'd never heard that phrase before. I mean it's straight forward, but she said it like it was this common phrase, which I guess it is, but you are only the 2nd person I've ever heard say it, and that's just in the past 2 days. Never heard it before. I'm that out of touch lol

Don't worry. I've only heard of it on internet posts. Nobody, and I mean nobody, in my social group ever uses it.

[ArArArchStanton]

Oct 21, 2019 21:22:39 GMT -6 WeirdRaptor said:

Oct 21, 2019 21:21:34 GMT -6 ArArArchStanton said:

You know what's sad? My wife had to explain to me what Netflix and Chill even meant last night. I'd never heard that phrase before. I mean it's straight forward, but she said it like it was this common phrase, which I guess it is, but you are only the 2nd person I've ever heard say it, and that's just in the past 2 days. Never heard it before. I'm that out of touch lol

Don't worry. I've only heard of it on internet posts. Nobody, and I mean nobody, in my social group ever uses it.

That makes sense. She's super into social media and I'm not, so it's probably one of those languages that only exist in the ether.

[WeirdRaptor]

Oct 21, 2019 21:24:36 GMT -6 ArArArchStanton said:

Oct 21, 2019 21:22:39 GMT -6 WeirdRaptor said:

Don't worry. I've only heard of it on internet posts. Nobody, and I mean nobody, in my social group ever uses it.

That makes sense. She's super into social media and I'm not, so it's probably one of those languages that only exist in the ether.

That sounds about right.