Netflix will borrow $ 2 billion from investors. How this will affect the quotes … The interest rate, maturity date and other terms of the offer will be determined during negotiations between the company and the original buyers.
Netflix is regularly increasing its debt. The company uses borrowed money to shoot high-budget films and series. The streaming service last issued $ 2 billion in bonds in April.
According to the results of the past quarter, the company's long-term debt amounted to $ 12.4 million.
Netflix will again spend a new loan on filming TV shows. The company is ramping up spending to beat the competition with other streaming services – Apple TV +, Disney +, NBCUniversal, Hulu and HBO Max.
After reporting on its third quarter results, Netflix said multibillion-dollar production budgets are helping to create projects on a grand scale, writes CNBC. The company even wrote a letter reassuring shareholders that the cost increases would help Netflix increase free cash flow in 2020.
Douglas Mickelson, an analyst at Swiss bank Credit Suisse, expects Netflix shares to rise 61.5% over the year. The streaming video provider performed excellently in the past quarter, but the analyst considers its guidance for the fourth quarter to be conservative.