Netflix to Raise $1.6 Billion for Content Acquisitions
Netflix plans a $1.6 billion offering of senior notes to raise money for content acquisitions and "strategic transactions."
The plans were unveiled Monday as the video streaming giant continues to take on rivals in the digital arena, including Amazon and Hulu. Netflix two weeks ago revealed that it may spend as much as $8 billion on content next year.
The video streaming giant gave no details on the interest rate or the maturity date for its proposed debt offering, which will be determined by negotiations between Netflix and the initial purchasers.
Netflix added it intends to use the proceeds of the deal for "general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions."
The streamer raising operating funds follows Netflix on Oct. 5 announcing it would raise the cost of its most popular U.S. plan by $1 to $11 per month, a move largely seen as helping to offset its growing content budget. It also raised the price on its 4K video plan, which will soon cost $13.99 per month.
The Los Gatos, Calif., company has been pumping resources into programming over the last several years, with a content budget expected to reach $6 billion this year. Executives had previously said they expected to spend $7 billion in 2018.
One reason why content spending may be going up is because Netflix plans to release 80 films in 2018, content chief Ted Sarandos revealed during a call with investors. Among those projects is the Robert De Niro vehicle The Irishman.
This article was originally published by The Hollywood Reporter.