Netflix raising US$400 million

Netflix is raising US$400 million (€296 million) in cash and said it will return to profitability after its UK and Ireland launch next year.

The US-listed streaming and rental service is selling a chunk of stock to T Rowe Price Associates, accounting for half of the capital being raised. The other half will come from notes, maturing at end-2018, placed with Technology Crossover Ventures. Both deals will close at the end of the month.

“With this additional capital from two long-term oriented investors, we have strengthened our balance sheet and remain focused on growing our streaming subscriptions and returning to global profitability after our launch of the UK in 2012,” said David Wells, Chief Financial Officer.

Netflix did not specify what the cash will be used for, but its content costs are rising as it launches outside of the US. It has recently inked UK deals with Miramax, Lionsgate and MGM.

Tags: Netflix, UK, US