Netflix seeks $1 billion loan to fund new shows

23.04.2020 - Evdokimov Roman
Netflix seeks $1 billion loan to fund new shows

Streaming service giant Netflix Inc (NFLX.O) will raise a $1 billion debt on Thursday to fund original shows and potential acquisitions. The American media-services provider and production company revealed that they have more than doubled its own projections for new customers and admitted that it was all because of the virus outbreak.

The company’s shares were down by 3% and priced at $420 in morning trade. It also predicted weaker sales in July once the lockdowns are lifted.

Some film releases and U.S. studio productions were paused due to the pandemic.

According to Chief Content Officer Ted Sarandos, Netflix already started working on more than 200 programming projects for 2020 and 2021.

Netflix was determined to produce original content for its 183 Million global subscribers as more streaming media services become popular in the United States such as Walt Disney Co’s (DIS.N) Disney+, Apple Inc.’s (AAPL) Apple TV+, HBO GO, and other upcoming rivals.

Analysts from Piper Sandler wrote in a client note, “Despite new services on the horizon from HBO and launches of services from Disney and Apple, we expect minimal long-term impact to Netflix subscriber addition and retention.”

The company raised a $15 billion cash budget last October 2019. It is selling a $2 billion offering of senior notes this time.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?