Netflix Looking to Raise $1.5 Billion for New Content
  • 6 years ago
On Monday, Netflix announced it will raise a fresh debt round of $1.5 billion to fund new content. Even though the plan will have little impact on Netflix's shares, it has some worried about a rising cash burn and debt load that only continues to grow for the streaming giant. Michael Pachter, an analyst for Wedbush securities and one of Wall Street's biggest Netflix bears, says, "Investors are oblivious to the fact that Netflix burns cash at an alarming rate. We expect Netflix to burn cash to fund content acquisition for many years, notwithstanding the fact that it has increased price three times while cash burn continues to grow."
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