Netflix To Raise $2 Billion In Debt To Fund More Original Content

According to a press release posted today, Netflix is planning to raise $2 billion to help fund new content, including 'content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.' TechCrunch reports: The funds will be raised in the form of senior unsecured notes, denominated in U.S. dollars and euros, it said. This debt offering is the sixth time in under four years that Netflix is raising $1 billion or more through bonds, noted Variety, which was among the first to report the news. As of September 30, Netflix's long-term debt had reached $8.34 billion, up 71% from $4.89 billion in the year ago quarter, it said during its last earnings, Variety's report also noted. Netflix recently explained during its Q3 2018 earnings that it needs to continue to invest in original programming in order to remain competitive. 'Content companies such as WarnerMedia and Disney/Fox are moving to self-distribute their own content; tech firms like Apple, Amazon and others are investing in premium content to enhance their distribution platforms,' the letter also stated. 'Amid these massive competitors on both sides, plus traditional media firms, our job is to make Netflix stand out so that when consumers have free time, they choose to spend it with our service,' it had said.

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