Analysis of Netflix's Fundraising and Financing Strategies Report

This report provides an in-depth analysis of Netflix's financial management, specifically focusing on its fundraising strategies. The analysis covers how Netflix secures its current financing, detailing the use of equity finance through public offerings and the role of long-term financing from banks and financial institutions. It examines the company's approach to raising equity, including the issuance of shares. The report further explores Netflix's debt structure, including the types of debts, such as content streaming obligations and lease agreements, along with the maturity structures of these debts. The report also references the company's annual reports to understand the financial decisions, such as the decrease in current assets to increase current financing and the capitalization of earnings from licensing and fees. Overall, the report offers a comprehensive overview of Netflix's financial strategies and debt management practices.

RUNNING HEAD: Analysis for Fund raising 1
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Table of Contents
Where and how does the firm get its current financing...............................................................................4
How Netflix is American Entertainment Company currently raise equity...................................................4
Whether company has loans and debt from the banks and financial institutions.......................................5
Maturity structure for the debts.................................................................................................................5
Types of debts Netflix is American Entertainment Company is having........................................................5
References...................................................................................................................................................6

Analysis for Fund raising 3
In this report adamantine study has been conducted on financial management functioning
of Netflix Company. It is observed that company has raised funds through equity finance and
long term finance has been taken from banks and financial institutions.
Where and how does the firm get its current financing
It is described that Netflix is American Entertainment Company founded by Reed
Hasting and Mac in 1997. Company raises its finance by issues of further public offer and taking
loans and borrowing from banks and financial institutions. As per the annual report 2016 of
Netflix is American Entertainment Company, it is observed that company has decreased its
current assets to increase its current financing. In addition to this, company has also capitalized
all of earing from licensing and fees in determined approach. Capital work in progress has also
reduced by company by selling out leasehold improvement in market to increase overall
financing of company (Wu, 2017). In further public offer, Netflix is American Entertainment
Company has issued 4,990,000,000 shares in market at $0.001 par value which resulted to
availability of finance of 1,599,762. However, company could also increase its overall finance by
issue of additional shares to the shareholders as bonus share, right issues and dividend (Walker,
et al. 2017).
How Netflix is American Entertainment Company currently raise equity
Netflix is American Entertainment Company is an American listed company which is
currently raising funds by issue of further public offer. Company has been complying with all the
applicable rules and regulation before issues of share in market. Company has followed proper
level of corporate governance process to issues shares in market and issued 4,990,000,000 shares

Analysis for Fund raising 4
in market at $0.001 par value which resulted to availability of finance of 1,599,762 (Needles,
Powers and Crosson, 2013).
Whether company has loans and debt from the banks and financial
institutions
Company has streamed content current and non-current obligation in its business
functioning which is accompanied by lease and other debts to private persons. However,
company has very low level of loans from banks which are booked as overdraft or term loans in
the balance sheet of organization.
Maturity structure for the debts
All the debts raised by company have different lock in period. For instance, lease taken
by the company is determined for 12 years. Bonds are issued for the period of 8 years. Loans and
advances taken by company is due as per the terms and conditions set by organization with the
banks (Zhang, 2016).
Types of debts Netflix is American Entertainment Company is having
Company has streamed content obligation in its balance sheet which is used to raise
finance from the banks and financial institution. However, company has created fixed charge on
its assets to raise loan from banks and lease options. However, certain interest rate has been set
by company to pay as a cost to deploy funds in value chain activities of organization.

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References
Needles, B., Powers, M. and Crosson, S., 2013. Financial and managerial accounting. Nelson
Education.
Walker, R., Walker, R., Jeffery, M., Jeffery, M., So, L., So, L., Sriram, S., Sriram, S., Nathanson,
J., Nathanson, J. and Ferreira, J., 2017. Netflix Leading with Data: The Emergence of Data-
Driven Video. Kellogg School of Management Cases, pp.1-19.
Wu, J., 2017. A Study of Earnings Managent & Financial Statement Reporting Issues Surroding
Public Traded Corporations (Doctoral dissertation, The University of Mississippi).
Zhang, S.T., 2016. Firm valuation from customer equity: When does it work and when does it
fail?. International Journal of Research in Marketing, 33(4), pp.966-970.

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