Netflix co-founder Hastings to exit board in June

Netflix said Reed Hastings, its co-founder and Executive Chairman, will not stand for re-election at the company’s annual meeting in June, ending a 29-year run at the streaming group he helped build. The company’s announcement was made on April 16, as it outlined its latest results and near-term outlook.

 

The update landed as Netflix is dealing with slowing sales growth amid intensifying competition, according to the company’s disclosure. It also comes after a merger attempt with Warner Bros Discovery failed, a development Netflix linked to its current strategic reset.

 

Markets reacted sharply. Netflix’s stock fell about 9% following the news of Hastings’ planned departure and a first-quarter earnings forecast that came in below analyst expectations, the company said.

 

On the financials, Netflix reported first-quarter earnings per share of $1.23, up from $0.66 in the same period last year. Revenue rose 16% to $12.25 billion, which the company said was slightly ahead of forecasts.

 

Even with that growth, Netflix told investors it expects quarterly revenue growth to slow in the current period. The company framed the outlook as part of a broader effort to sustain expansion while the streaming market becomes more crowded.

 

Netflix also set out priorities it says will support future growth, including widening its entertainment slate beyond traditional series and films. The company pointed to plans that include video podcasts and live programming, citing events such as the World Baseball Classic as an example of the types of offerings it intends to pursue.

 

Technology and monetization were central themes in the company’s strategy update. Netflix said it aims to use technology to improve the user experience and strengthen monetization, and it projected advertising revenue will reach $3 billion by 2026, which it described as a twofold increase from the previous year.

 

Netflix said it received a $2.8 billion termination fee tied to the failed Warner Bros Discovery merger and plans to use that money to support its growth initiatives. The company did not provide additional detail in this update on how the funds will be allocated across specific projects.