Netflix to raise $1 billion to fund original content

Netflix Inc said on Wednesday it plans to raise about $1 billion in debt to beef up original content, a day after the streaming pioneer doubled its own projections for new customers as stuck-at-home users binged on movies and shows.

Shares of the company were down 3% at $420 in morning trade after it also forecast a weaker second half of the year when shelter-in-place orders are lifted.

Netflix plans to use some of the cash to acquire content and for possible acquisitions, positioning itself as major U.S. studios halt productions and delay film releases due to the coronavirus-led lockdowns.