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Netflix said Monday that it was planning to raise 1 billion euros, or $1.09 billion, via a bond offering outside the U.S.
“Netflix intends to use the net proceeds from this offering for general corporate purposes, which may include content acquisitions, capital expenditures, investments, working capital and potential acquisitions and strategic transactions,” the company said.
In the fall, Netflix raised $1 billion in a similar debt offering.
Wall Street observers have expected a latest debt offering or other financing round, saying that the streaming video giant would have to raise more money to fund its continued push into originals, which continues to boost its content spending.
As the streaming giant’s content spending has increased, so has the cost to promote its projects. For example, Netflix said as part of its latest earnings report last week that it would spend more than $1 billion in 2017 to market its content.
“Netflix is pacing to spending more on content than we have previously expected ($9.5 billion in cash in 2017),” Drexel Hamilton analyst Tony Wible said in a research report after the company’s earnings report. “At the same time, we are seeing a decline in the use of payables that have historically helped finance content costs. Netflix has noted it is looking to soon raise debt. We estimate it may need more than $1 billion of capital by year-end.”
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