Feeds

Netflix raises $400m to steady its global expansion

Movie rental firm taps investors for extra cash as it moves into Europe

Protecting users from Firesheep and other Sidejacking attacks with SSL

Video rental firm Netflix, soon to be hitting the UK shores, has raised $400m in fresh capital from long-time investors to try to boost the firm after a tough few months.

The US company has dropped nearly 75 per cent of its market value since July, when it announced an ill-fated plan to split its DVD and streaming services and hike its prices while it was at it.

After a couple of months of withering criticism from the media and haemorrhaging subscribers, Netflix realised the error of its ways and dumped the whole Qwikster-DVD-spinoff idea for good, but the damage was done on the markets.

In a letter to shareholders outlining its third quarter results in October, the movie rentals firm said it had lost subscribers as a result of the moves, as well as damaging "our hard-earned reputation".

Netflix is now trying to get its feet planted firmly back on the ground as it takes on Lovefilm in the UK early next year, starting with a streaming-only service.

The firm grabbed the additional funds it needs from existing investors, signing a deal for $200m worth of convertible notes with Technology Crossover Ventures and affiliates.

That contract was dependent on Netflix managing to convince another investor to give it an additional $200m for stocks, according to an SEC filing, which it did in a deal with T Rowe Price Associates and affiliates.

"With this additional capital from two long-term oriented investors, we have strengthened our balance sheet and remain focused on growing our streaming subscriptions and returning to global profitability after our launch in the UK in 2012," David Wells, CFO, said in a canned statement. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Hey, Scots. Microsoft's Bing thinks you'll vote NO to independence
World's top Google-finding website calls it for the UK
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.