Netflix Shares Hit Low After Projecting 2012 Loss
The company plans to raise $400 million in cash
Netflix shares have hit their lowest point in over a year, just a day after the company announced that it was raising $400 million in cash and will likely incur a loss in 2012.
The company said yesterday that it planned to raise cash by selling $200 million in common stock to T. Rowe Price at $70 a share, and another $200 million in bonds to its investor Technology Crossover Ventures. A Netflix spokesman told the WSJ that the company isn’t in dire need of more cash, but analysts consider the $400 million necessary as the company makes expensive content deals and prepares to launch in the U.K.
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