Netflix to issue debt as it looks to add content with acquisitions, production
Earlier Monday, Netflix announced plans to offer $1.5B in debt notes for general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions. ADDING INTELLECTUAL PROPERTY: The streaming giant reported first quarter results last week that included the addition of 7.4M subscribers in Q1, beating expectations. Netflix said the large number of new subscribers is attributable to the "growing breadth of our content and the worldwide adoption of internet entertainment." With its earnings report, the company indicated an interest in adding to intellectual property. During its earnings presentation, Netflix Chief Content Officer Ted Sarandos confirmed the company's ambitions, saying "In terms of using M&A to acquire intellectual property, it could be a very useful tool." PRICE ACTION: Currently, shares of Netflix are down around 2.5% to $319.44 per share.