Netflix shares closed lower in the US Monday, as the TV streaming giant announced the planned issue of a new $2 billion bond to fund its continued production of original content. This is the second debt issue from the firm in a year, in its bid to retain the upper hand over its competitors, with regards to content.
Netflix shares ended the Monday US trading session 0.94% lower at $329.54. The stock is also in the red in out-of-hours activity.
Netflix debt issue
Netflix announced Monday its intention to offer $2 billion in debt, in two series.
“Netflix intends to use the net proceeds from this offering for general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions,” Netflix said in a press release.
The TV streaming giant continues to pursue an aggressive content strategy, including creating original programming and acquiring the rights to existing content.
Netflix plans to invest some $8 billion in content over the course of 2018 and has already spent around $7 billion.
Oscar winning director to produce animated musical
Netflix also shared the news Monday, that award winning director, Guillermo del Toro, would write, direct and produce an animated, stop motion musical of Pinocchio for the TV streaming business.
Del Toro has already worked with Netflix on its TV series, DreamWorks Trollhunters and upcoming Netflix series, Guillermo del Toro presents 10 After Midnight.
“No art form has influenced my life and my work more than animation and no single character in history has had as deep of a personal connection to me as Pinocchio,” said del Toro said. “I’ve wanted to make this movie for as long as I can remember.”
Netflix was equally upbeat on the project.
“We are incredibly excited to expand our relationship with Guillermo and we know that his deeply touching vision for bringing Pinocchio to life on Netflix will be embraced by audiences the world over,” said Melissa Cobb, Vice President of Kids and Family at Netflix.