Netflix is returning to the junk-bond market to fund its content expansion as it faces pressure from media giants including Disney, AT&T and Apple.
Netflix has been raising prices in some of its largest territories, trying to shift toward profitability as its competition mounts.
Netflix Inc. is returning to the junk-bond market to fund its content expansion as the streaming-video giant comes under pressure from media titans including Walt Disney Co., AT&T Inc. and Apple Inc. The streaming company is selling $2 billion of bonds in a two-part offering denominated in dollars and euros, it said Tuesday. It said the proceeds will be used for general corporate purposes that may include investing in content, production and development.The notes will mature in 10.5 years and can’t be bought back, according to a person with knowledge of the matter. Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co., Deutsche Bank and Wells Fargo & Co.
. It has been raising prices in some of its largest territories, trying to shift toward profitability as the competition among streaming services mounts. Los Gatos, Calif.-based Netflix has traditionally borrowed semiannually following its first- and third-quarter results in April and October, respectively, amassing a $10-billion debt load in the process. But Chief Executive Reed Hastings said the issuance may not last much longer as the company will soon be able to fund itself. It still expects to burn through $3.5 billion of its cash this year, but its financing needs will start to abate in 2020.
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