Netflix reported almost $12 billion in total debt


Netflix announced Monday it intends to issue a new round of notes for “general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”

Shares of Netflix fell as much 3 percent in morning trading Monday before erasing nearly all of those losses.

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 is burning cash at faster and faster rates.

In its third quarter earnings report last week, the company reported negative free cash flow of $859 million. The company is guiding toward a full-year free cash flow of negative $3 billion for 2018.

Source: CNBC