Co-founder Reed Hastings to step down from Netflix board | Netflix
Netflix chief Reed Hastings is leaving the streaming service he co-founded 29 years ago as the company gets back on its feet after losing a $72 billion deal with Warner Bros. Discovery.
In a letter sent to investors Thursday, Netflix said Hastings will not run for re-election at the annual meeting in June and plans to focus on philanthropy and other pursuits.
The company’s shares fell nearly 8% on news of Hastings’ departure.
“Mr. Hastings’ decision not to seek re-election is not the result of any disagreement with the company,” Netflix said in an SEC filing on Thursday. One Statement to VarietyHastings said Netflix changed his life. The company has not named his successor.
“My all-time favorite memory was January 2016, when we enabled nearly the entire planet to enjoy our service,” said Hastings, 65, and offered “special thanks” to co-CEOs Ted Sarandos and Greg Peters, “whose commitment to the greatness of Netflix is so strong that I can now focus on new things.”
Hastings founded Netflix 29 years ago in northern California and led its transformation from a mail-order DVD company into an avatar of the streaming TV era. He steps down as CEO in 2023.
In a 14-page shareholder letter, Netflix reaffirmed that its mission remains “ambitious and unchanging” – to entertain the world, offering films and series to suit many tastes, cultures and languages. The company’s full-year financial outlook remains unchanged.
The company hasn’t said how it plans to spend the $2.8 billion termination fee it received after losing the Warner Bros. movie studio and HBO.
Netflix sought to acquire Warner Bros. last year, but ultimately backed out, leaving Paramount Skydance in the path of acquiring the studio. Paramount is run by David Ellison, son of Trump supporter Larry Ellison.
In its earnings release, the company announced that its revenue rose 16% year-over-year to $12.25 billion, modestly beating analysts’ estimates of $12.18 billion.
Telling investors that the acquisition of Warner Bros. was a “nice to have, no need to own” proposition, Netflix highlighted areas of future growth.
The company said its investment in expanding entertainment offerings with video podcasts and live entertainment such as the World Baseball Classic in Japan has increased engagement. With ad revenue on track to reach $3 billion in 2026 (a double from a year ago), it plans to use technology to improve user experience and improve monetization.
