Netflix is borrowing another $2 billion to fund its operations, the streaming service said, announcing its latest bond offering. That’s no surprise: the company had said last week, in reporting quarterly earnings, that its cash burn would rise slightly to $3.5 billion this year and it would use the bond market to “finance our cash needs.”
The offering will raise the company’s total debt to $12.3 billion. Netflix had $3.348 billion in cash at March 31, most of which it will use up this year, suggesting it will finish the year with net debt of around $10 billion. How much more debt Netflix will pile on before it starts generating positive cash flow is the question that bond investors are sure to be asking.