Netflix takes on debt to buy more content

Netflix announced that it plans to offer USD 1.6 billion in new debt to fund the production and acquisition of new content, as well as potential strategic purchases.

“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”, said the company.

Recently, the OTT service presented its quarterly results in which it reported a total base of 109.25 million members. During the presentation of Q317 data, the company said it plans to spend up to USD 8 billion in content by 2018. For Q4 2017, Netflix forecasts global net adds of 6.30 million members to reach a total base of 115.55 million.