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Netflix is raising $1.6 billion with the sale of new notes

  • Netflix is selling $1.6 billion worth of notes as the streaming service continues to expand its content budget.
  • The company increased its content budget from $7 billion to as much as $8 billion for next year.
Reed Hastings, CEO of Netflix
Getty Images
Reed Hastings, CEO of Netflix

Netflix is selling $1.6 billion worth of notes as the streaming service continues to expand its content budget, the company said Monday.

Proceeds of the sale would be used for general business purposes including content acquisition and development, according to a press release.

The notes will be offered to "qualified institutional buyers" and will be subject to negotiations with regard to interest rate and maturity date, the release said.

Netflix reported 5.3 million new subscribers during the third quarter and emphasized a long-term push for exclusive, original content in earnings conference calls.

During the earnings announcement, Netflix said it would spend $7 billion to $8 billion on content in 2018 — tacking on $1 billion to the upper limit of earlier content budget estimates.