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Alexkid · 11-22-2011, 03:11 AM

Netflix seeks to raise at least $400 million
MICHAEL LIEDTKE
(The Associated Press)

06:11:16AM (ET) Tuesday,November 22,2011.

SAN FRANCISCO (AP) — Netflix raised $400 million Monday as the video subscription service tries to recover from a customer backlash that has battered its stock and tarnished its brand.

The decision to issue more debt and stock may rattle some investors still worried about Netflix's ability to recover from a crisis triggered by management's July announcement that it was raising U.S. prices by as much as 60 percent.

Netflix shares initially fell sharply in Monday's extended trading after the company disclosed its fundraising plan, but then bounced back. The shares were down just 87 cents, or slightly more than 1 percent, to $73.60 late Monday.

The stock has fallen out of favor since hitting a high of nearly $305 in mid-July. That was around the same time Netflix Inc. announced it would be raising prices, so it could afford to pay movie and TV studios more money for the rights to stream video over high-speed Internet connections. The price increase took effect Sept. 1.

The attempt to milk customers for the higher licensing fees backfired when subscribers started to abandon Netflix en masse. The revolt worsened when Netflix in September announced a since-aborted plan to spin off its DVD-by-mail rental service into a separate website called Qwikster. The result: a loss of 800,000 subscribers during the July-September period with more defections still piling up. Netflix ended September with 23.8 million U.S. subscribers.

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11-22-2011, 03:11 AM	#1
Alexkid Your World & Experience Join Date: Jan 2009 Location: Eastern Time Zone Posts: 6,861 Rep Power: 10	Netflix seeks to raise at least $400 million Netflix seeks to raise at least $400 million MICHAEL LIEDTKE (The Associated Press) 06:11:16AM (ET) Tuesday,November 22,2011. SAN FRANCISCO (AP) — Netflix raised $400 million Monday as the video subscription service tries to recover from a customer backlash that has battered its stock and tarnished its brand. The decision to issue more debt and stock may rattle some investors still worried about Netflix's ability to recover from a crisis triggered by management's July announcement that it was raising U.S. prices by as much as 60 percent. Netflix shares initially fell sharply in Monday's extended trading after the company disclosed its fundraising plan, but then bounced back. The shares were down just 87 cents, or slightly more than 1 percent, to $73.60 late Monday. The stock has fallen out of favor since hitting a high of nearly $305 in mid-July. That was around the same time Netflix Inc. announced it would be raising prices, so it could afford to pay movie and TV studios more money for the rights to stream video over high-speed Internet connections. The price increase took effect Sept. 1. The attempt to milk customers for the higher licensing fees backfired when subscribers started to abandon Netflix en masse. The revolt worsened when Netflix in September announced a since-aborted plan to spin off its DVD-by-mail rental service into a separate website called Qwikster. The result: a loss of 800,000 subscribers during the July-September period with more defections still piling up. Netflix ended September with 23.8 million U.S. subscribers. --------------------------------------------------------------- 400mil... __________________ Yeah...Do That.

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Gadget Gathering Thread About, Netflix seeks to raise at least $400 million