Uses ”may include content acquisitions, production and development,“ streaming service says
Netflix plans to raise $2 billion dollars for what it refers to as “general corporate purposes,” which it says “may include content acquisitions, production and development,” among other things.
Here is the full relevant language from the Securities and Exchange Commission filing: “Netflix intends to use the net proceeds from this offering for general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”
Netflix reported its third-quarter 2019 earnings last week, when it surpassed earnings expectations but narrowly missed out on hitting the 7 million new subscribers it had forecast.
The streaming service’s Q3 earnings came as it’s about to face increased streaming competition. Disney and Apple will both launch their new streaming services next month, while HBO Max and NBCU’s Peacock are set to debut next year. During the company’s Q3 earnings call, Netflix executives said the cheaper cost of Apple and Disney’s streaming services will not stop it from raising subscriber fees in the future.
If this headline looks familiar, it is because Netflix did pretty much the exact same thing back in April, and last October.
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Tony Maglio
TV Editor • tony.maglio@thewrap.com • Twitter: @tonymaglio