Quote:
Originally Posted by jfman
Where does the money come from to diversify if they are $30bn in debt?
In any other sector this would be a business in distress. The shareholders are essentially hoping someone buys them because of their existing technology and customer base.
Larger companies with existing profitable businesses (and crucially assets to support their debt) like Liberty, Comcast or dare I even suggest Amazon could pull the rug from under a Netflix very easily if it was worthwhile. I suspect it isn’t, but it’s a precarious position.
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Yes, they are in debt because they are investing heavily in the future. Clearly, investors believe that the future is worth investing in as far as this company is concerned.
In time, Netflix will presumably give rights to show their older original content and bolster their income that way.