Netflix founding member Reed Hastings announces departure, stock price plunges 8%
Phoenix Technology News, UTC+8, April 17—According to Reuters, Netflix Chairman Reed Hastings will be leaving the streaming company he co-founded 29 years ago. The company is now regaining its footing after missing out on a $72 billion deal with Warner Bros. Discovery.
In a letter sent to investors on Thursday, Netflix stated that Hastings will not stand for re-election to the board at the annual shareholders meeting in June, and plans to focus on philanthropy and other personal pursuits.
After news of Hastings' departure broke, Netflix shares dropped 8%. The co-founder is credited with revolutionizing how people watch entertainment at home and transforming Hollywood's business model.
"Netflix's revenue is currently achieving double-digit growth, profit margins are set to improve by 2026, and free cash flow is abundant. Although first-quarter financial performance was steady, Hastings' departure has unnerved investors," said Richard Greenfield, media analyst at research firm LightShed Partners.
In a 14-page letter to shareholders, Netflix reiterated that its mission remains "ambitious and unchanged": to entertain the world and provide films and shows for viewers of different tastes, cultures, and languages. The company's full-year outlook remains unchanged. (Author/Xiao Yu)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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