Netflix Inc. (NFLX), the video-streaming and DVD subscription service, agreed to sell $400 million in stock and convertible notes to bolster cash as it increases spending for online rights to films and TV shows.
Technology Crossover Ventures will purchase $200 million in zero-coupon senior convertible notes due 2018, and T. Rowe Price Associates Inc. funds will buy $200 million in stock, Los Gatos, California-based Netflix said yesterday in a statement.
The transactions suggest Netflix’s cash squeeze may last longer than it had anticipated, said Michael Pachter, an analyst with Wedbush Securities in Los Angeles. The company needs to spend more to make its streaming content stand out against a growing list of competitors, he said.
Full story: Netflix Raises $400 Million to Bolster Cash