Netflix plans $2bn debt raise to fund content growth

Netflix plans $2bn debt raise to fund content growth

Netflix is planning on raising $2bn (£1.5bn) through a bond offering to fund content growth.

Netflix said it 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".

“This is further proof of Netflix’s need for capital to fund short-term operations and content,” Richard Miller, managing partner at Gullane Capital, told the Guardian.

Last week the company announced revenues of $11.6bn (£8.98bn) for the nine months ending in September and said it plans to spend $8bn (£6.19bn) on content and $2bn (£1.55bn) on marketing this year. It will also invest $1.3bn (£1.01bn) in technology and development.

The latest debt issue follows one of  $1.9bn (£1.47bn) in April and one of $1.6bn (£1.24bn) last year.