Netflix is fueling its ballooning cash burn with $2 billion in new debt

Netflix is fueling its ballooning cash burn with $2 billion in new debt.

The company announced Monday it intends to issue a new round of notes for "general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions."

Shares of Netflix fell 3 percent in morning trading Monday.

The $2 billion adds to the growing debt burden on Netflix's balance sheet. The company reported more than $8 billion in long-term debt as of Sept. 30.

At the same time, Netflix is burning cash at faster and faster rates.

In its third quarter earnings report last week, the company reported negative free cash flow of $859 million. The company is guiding toward a full-year free cash flow of negative $3 billion for 2018.

Let's block ads! (Why?)

from Top News & Analysis https://ift.tt/2R5qMps
via IFTTT