Having managed to infuriate both their customers and their stockholders earlier this year, Netflix has apparently decided to ride the insanity right into oblivion. They are now selling $200 million of bonds to Technology Crossover Ventures in return for stock and putting someone on the board. Basically, they’re diluting all their current shares of stock and giving up a little bit of control for a giant pile of money.
Investors did not take kindly to the move, with Netflix shares dropping again to a new low in what has already been a horrific year. And analysts are not being particularly kind, labeling the move as “bad to the point of desperation.”
Said Netflix: “Netflix has no cash or general liquidity needs, and therefore we have no immediate plans to use this capital. We don’t think we need it, but it’s always nice to have more money than you need.”
Oh yes, of course. They don’t actually need that pile of money that they just gave a pint of blood for, they just like having it. I’m curious what they’re going to do with it then, if they’re not going to actually spend it. Fill a swimming pool? At this point, I don’t think they’re running a company so much as creating an elaborate performance art piece on badly running a company.