Netflix to Debt $ 2 Billion to Fund More Original Content – TechCrunch

Netflix's commitment to expand its original content collection will allow the company to return to the debt markets for more financing, the company announced today. According to a statement posted on the website of its investors, Netflix announced its intention to raise $ 2 billion to help fund new content, including "content acquisitions, production and development, capital expenditures, investments, working capital, potential acquisitions and strategic transactions ".

The funds will be collateralized as senior unsecured notes denominated in US dollars and euros, he said.

This debt offering is the sixth time in less than four years that Netflix has raised $ 1 billion or more through bonds, noted Variety, one of the first to announce the news. As of September 30, Netflix's long-term debt had reached $ 8.34 billion, up 71 percent from $ 4.89 billion in the same quarter last year, according to the Variety report.

Netflix recently explained in its third quarter of 2018 that it should continue to invest in original programs to remain competitive.

"We realize that we invest a lot of money in content and we want to insure our investors.
that we have the same high confidence in the underlying economic data as our cash investments in the past.
We believe that these investments will most likely help us to keep our revenues and operating profits up for
a long time in advance, "reads the letter to the shareholders.

Netflix also pointed out that growing competition in the sector was one of the reasons why investment in original content was so critical, adding that she was not only competing with linear TV, YouTube, games, social media, DVDs and pay-per-view. but with a number of new and future streaming services.

"Content companies such as WarnerMedia and Disney / Fox employ themselves to distribute their own content. Technology companies like Apple, Amazon and others are investing in higher quality content to improve their distribution platforms, "the letter said. "Among these huge competitors on both sides, as well as traditional media companies, our job is to make sure that Netflix stands out so that consumers, when they have free time, choose to spend it with our service. He had said.