×
You will be redirected back to your article in seconds

Netflix Takes Out New Line of Credit for Up to $750 Million

Netflix has whipped out the credit card to potentially spend another half-billion dollars — or more — on content and global expansion.

The company has entered into a revolving credit agreement to borrow $500 million, according to a regulatory filing Friday. In addition, Netflix has the option to increase the amount of the revolving credit facility by up to an additional $250 million, subject to certain terms and conditions.

Netflix said it will not immediately borrow any amount under the revolving credit facility. In the future, the company may use the cash for “working capital and general corporate purposes,” according to the filing. Netflix’s most cash-intensive activities are acquiring and producing content.

The move is the latest by Netflix to fund its enormous appetite for programming. In its second-quarter 2017 letter to shareholders, Netflix said it will continue to use debt to finance its spending, including on original content, after closing a $1.4 billion offering (1.3 billion euros) in April. The company expects to have negative free cash flow “for many years,” execs said in the letter.

As of June 30, Netflix had $4.84 billion in long-term debt (versus $3.36 billion at the end of 2016). Streaming content obligations — payments related to the acquisition, licensing and production of streaming content over a multiyear period — swelled to $15.7 billion at the end of Q2, up from $13.2 billion in the second quarter of 2016. Cash and equivalents stood at $1.47 billion as of June 30, versus $1.92 billion at the end of 2016.

Popular on Variety

The lenders for Netflix’s new line of credit are Deutsche Bank, Goldman Sachs, JPMorgan Chase Bank, Morgan Stanley and Wells Fargo.

More Digital

  • Morning Show Apple

    Golden Globe Noms: 'The Morning Show' Turns Apple TV Plus Into a Kudos Contender

    “Euphoric” was the word to describe the atmosphere around the Apple TV Plus offices in Culver City, Calif., on Monday morning as staffers awoke to the news that the fledgling service’s cornerstone drama series, “The Morning Show,” had landed three major Golden Globe Award nominations. Apple Worldwide Video had exactly two employees — heads Jamie [...]

  • Game of Thrones Avengers Endgame

    'Game of Thrones,' 'Avengers: Endgame' Among Most Popular Tweets of 2019

    Twitter released its top-trending topics and tweets of 2019 with “Game of Thrones,” “Avengers: Endgame,” and actor Tom Holland commanding the most tweets in the TV, movies, and actors categories. BTS holds both the No. 1 spot in the most-tweeted-about musicians category and the second-most-retweeted tweet worldwide. Since its release in June, a video of [...]

  • Portugal's Cristiano Ronaldo celebrates his side's

    Canal Plus, beIN Sports In Exclusive Talks For Distribution Deal

    Vivendi-owned pay-TV banner Canal Plus Group and the global network beIN Sports have started exclusive talks to sign a five-year exclusive distribution and sub-licensing deal in France. The two companies previously tried to forge a partnership in 2016 but it was denied by France’s anti-trust board. Under the proposed deal, Canal Plus would distribute all [...]

  • NBCUniversal Peacock

    Comcast to Spend $2 Billion on NBCU's Peacock Streaming Service in First Two Years

    Comcast expects to pump $2 billion into NBCUniversal’s Peacock streaming service in aggregate over 2020 and 2021, while the company is projecting it will not be profitable for the first five years, according to CFO Mike Cavanagh. Cavanagh, who provided the details Monday at UBS’s Global TMT Conference in New York City, tried to put [...]

  • Watcher Entertainment - Steven Lim, Ryan

    Ex-BuzzFeed Video Staffers Launch Watcher Entertainment Digital Studio (EXCLUSIVE)

    UPDATED: After building their careers as internet personalities at BuzzFeed, the creators and hosts of three of the company’s biggest shows — Steven Lim, Ryan Bergara and Shane Madej — have formed their own digital-video venture. They quit BuzzFeed earlier this year and founded L.A.-based Watcher Entertainment, with the trio looking to get full creative [...]

  • 25. Oktober 2019, Berlin, Deutschland, JustWatch[Foto:

    Streaming Guide JustWatch Acquires Video Search Engine GoWatchIt (EXCLUSIVE)

    Berlin-based streaming guide JustWatch has acquired media search engine GoWatchIt from Plexus Entertainment, and is using the acquisition to open up its first office in New York. Terms of the deal, which was stock- and cash-based, haven’t been disclosed. GoWatchIt founder and CEO David Larkin will join JustWatch as its new senior vice president of [...]

  • CBS Joins Open AP Audience-Targeting Alliance

    CBS Joins Open AP Audience-Targeting Alliance

    “Young Sheldon” leads CBS’ Thursday-night schedule. Soon it may help to lead advertisers to a new way of placing their commercials. CBS has joined “Open AP,” the audience-targeting alliance working to accelerate the emerging advertising practice known as “audience buying.” Open AP works to give advertisers a way to buy impressions from particular types of [...]

More From Our Brands

Access exclusive content