Netflix has announced that it plans to raise $2 billion in financing through debt securities today, marking the sixth time in less than four years that the company is raising $1 billion or more through bonds.
As of three weeks ago, Netflix has accrued a reported $8.34 billion in long-term debt, up 71% from a year ago, and a total debt of $11.83 billion.
Netflix is burning cash and plans to continue doing so for at least another year in order to continue their huge investments into both original content and high profile acquisitions. The company’s annual spending on content has reportedly risen past $12 billion – easily dwarfing that of its competitors – and they premiered nearly 700 hours of original programming on the platform in the third quarter.
The proposed $2 billion debt offering comes days after Netflix blew past expectations for subscriber growth for the third quarter of 2018, scoring seven million new streaming customers for the period.