Netflix announced Monday that its raising another $2 billion in debt — the third time in a year the company has offered more than $1 billion in debt securities — as it looks to fund its aggressive content strategy.
“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,” the company said in its announcement.
The Los Gatos, California-based company is spending upwards of $8 billion on shows this year, and reported last week it had $8.3 billion in long-term debt at the end of the third quarter. Monday’s announcement follows the company raising $1.5 billion in debt in April; Netflix also raised $1.6 billion last October.
Netflix shares dipped about 0.75 percent, hitting $330 a share, in early morning trading on Monday.
But investors have largely signed off on Netflix’s big spending, as the company aims to attract subscribers with a mountain of original shows, including “Ozark” and “Maniac.” Netflix shares jumped more than 10 percent last week, despite posting a record $859 million cash burn for the third quarter. Why? Because the streaming heavyweight blew past subscriber estimates, swelling to about 137 million global customers.
For the year, Netflix shares have increased more than 60 percent.