Trump labels Reed Hastings a ‘SLEAZEBAG’, questions why Netflix co-founder stepped down: ‘What was his crime?’

Donald Trump took to social media to attack Netflix co-founder Reed Hastings hours after he announced he was leaving the streaming giant’s board; The company simultaneously reported a disappointing quarterly outlook that sent its shares down nearly 9 percent.

Trump calls Reed Hastings ‘depraved’ on Truth Social

Donald Trump wasted little time in responding to the news that Reed Hastings was leaving the Netflix board. Writing on Truth Social on Saturday, the US president wrote: “Did Reed Hastings have to leave the Netflix Board because he was SLEAZEBAG? What were his crimes and how many did he commit?”

Trump offered no evidence to support the characterization and offered no other context for the attack. The post comes a day after Netflix officially announced that Reed Hastings, 65, is stepping down after 29 years with the company he co-founded, citing philanthropy and a desire to pursue personal interests.

Reed Hastings Resigns After 29 Years: End of an Era at Netflix

Hastings’ departure closes a defining chapter in the history of online entertainment. He provided the seed capital to launch Netflix as a DVD-by-mail service and was appointed chief executive in 1999, replacing co-founder Marc Randolph. Over the decades that followed, he led the company through its struggle for existence with Blockbuster Video and spearheaded its transformation into a global streaming platform operating in more than 190 territories.

Under his management, Netflix has become the world’s most valuable entertainment company, surpassing Hollywood studios at almost every turn. He stepped down from his role as chief executive officer in January 2023, handing the position jointly to Ted Sarandos and Greg Peters.

In a letter to shareholders, Hastings reflected on his legacy with characteristic understatement. “My real contribution to Netflix wasn’t a single decision; it was to focus on member happiness, build a culture that others could inherit and build upon, and build a company that could be both beloved by members and wildly successful for generations to come,” he wrote.

Speaking on an investor call, Sarandos said Hastings’ exit was a result of the company’s recently failed Warner Bros. He sought to dispel any suggestion that he was linked to the attempted acquisition of Discovery. “I apologize if anyone is looking for palace intrigue here,” he said. “Reed was a big proponent of this deal. He championed it with the board. The board unanimously supported the deal.”

Netflix Shares Drop 9% as Second Quarter Forecast Disappoints Wall Street

The Hastings news came alongside a set of quarterly results that stunned investors. Netflix shares fell nearly 9 percent in extended trading after the company released its second-quarter forecast that fell short of analyst expectations; This marks the steepest single-session decline in the last four years.

For the current quarter, Netflix forecast earnings per share of 78 cents, below the 84 cents Wall Street expected. Revenue expectations for the three months ending in June were $12.57 billion, falling short of the $12.64 billion consensus estimate compiled by . Bloomberg.

Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, succinctly captured the mood on Wall Street. “These are great numbers. What people wanted was even better,” he told Bloomberg TV. “They didn’t raise their guidance for the year the way I think people were hoping.”

First quarter results, by contrast, were solid. Revenue rose 16 percent year over year to $12.3 billion, above forecasts of $12.2 billion. Earnings per share came to $1.23, versus estimates of 76 cents; This is partly due to Warner Bros. It also increased due to the $2.8 billion breakup fee paid by Paramount to Netflix after the deal collapsed.

Netflix Leaving Warner Bros. with $2.8 Billion Separation Fee

Netflix’s Warner Bros. His withdrawal from the tender process had shaken investors’ confidence; Some on Wall Street interpreted the move as a sign that the company had exhausted its strategic goals. Paramount eventually agreed to buy Warner Bros. for $110 billion; this deal currently faces regulatory scrutiny in both the US and Europe, and fierce opposition from Hollywood.

Sarandos countered the narrative that Netflix turned a blind eye. In the shareholder letter, he and Peters wrote that Warner Bros. “could be a nice accelerator for our strategy, but only at the right price.” During the investor call, Sarandos confirmed that mergers and acquisitions “remain a tool to help achieve our goals,” while adding that this experience has taught the company “a lot about deal execution.” Warner Bros. “As you can see from the agreement, we will remain very disciplined in how we approach it.”

What’s Next for Netflix: Sports, Mobile and Subscriber Engagement

Warner Bros. With the closure of its division, Netflix is ​​turning its attention to growth on multiple fronts. Sarandos identified three priorities for the coming period: stronger programming, new technology and increased revenue per member. The company raised the price of its standard ad-free subscription from $2 to $20 per month in March.

On the content side, Netflix plans to increase its sports programming around the world. Sarandos cited the World Baseball Classic as a case study, noting that it generated record subscriber additions in Japan. He also confirmed that the company is in talks about deepening its relationship with the National Football League.

A revamped mobile experience featuring vertical video exploration streaming will be available later this month. Netflix is ​​also expanding into video games and podcasts as it aims to increase the time users spend within its ecosystem; this metric has remained generally stable over the past two years.

The co-chairs reported a decrease in their own salaries last year. Sarandos earned $53.9 million and Peters earned $53.2 million.