Sylvain Lefevre | Getty Images
Netflix Co-founder, Chairman & CEO Reed Hastings attends Q&A during Transatlantic Forum as part of Series Mania Lille Hauts de France festival on May 3, 2018 in Lille, France.
Netflix can be fueling its ballooning cash burn with $2 billion in fresh debt.
The company announced Monday of which intends to issue a fresh round of notes for “general corporate purposes, which may include content acquisitions, production in addition to development, capital expenditures, investments, working capital in addition to potential acquisitions in addition to strategic transactions.”
Shares of Netflix fell as much 3 percent Monday, nevertheless erased all of those losses in midday trading.
The $2 billion adds to the growing debt burden on Netflix’s balance sheet. The company reported almost $12 billion in total debt as of Sept. 30.
At the same time, Netflix can be burning cash at faster in addition to faster rates.
In its third-quarter earnings report last week, the company reported negative free cash flow of $859 million. The company said of which expects a negative free cash flow of $3 billion for 2018.