Netflix Co-Founder Hastings Steps Down From Board

Netflix said on Thursday that co-founder Reed Hastings will not stand for re-election to the company’s board of directors at its annual meeting in June. The company said Hastings, who co-founded Netflix 29 years ago, intends to shift his attention toward philanthropy and other ventures.

The announcement came as Netflix reported first-quarter results that modestly topped analyst expectations. The company also reaffirmed its full-year outlook and reiterated its stated mission to entertain a global audience, according to the announcement.

In the first quarter, Netflix reported earnings per share of $1.23, up from $0.66 in the same period last year. Revenue increased 16% to $12.25 billion, exceeding analyst forecasts of $12.18 billion, the company said.

After the board update and earnings release, Netflix shares fell by about 8%, according to the report. The company did not provide details on how it plans to use the $2.8 billion termination fee tied to the failed Warner Bros acquisition.

The board change follows Netflix losing a $72 billion deal for Warner Bros Discovery to Paramount Skydance, as described in the report. Netflix did not link Hastings’ decision to the outcome of that deal, and the company’s statement focused on his personal plans and the timing of the annual meeting.

Netflix also outlined priorities aimed at expanding engagement and diversifying revenue streams. The company said it is pushing further into video podcasts and live entertainment, alongside its core streaming business.

On advertising, Netflix projected ad revenue will reach $3 billion in 2026. The company described that target as roughly double the prior year’s level, positioning advertising as a growing part of its business model.

For investors and industry watchers, the update combines leadership transition with a snapshot of operating momentum and strategic direction. However, uncertainty remains around the company’s next steps for the $2.8 billion termination fee, since Netflix did not disclose any allocation plan.

Netflix’s reaffirmed full-year outlook and its stated focus on new formats arrive as global streaming competition continues to evolve. The company’s latest guidance and product expansion plans will be watched closely for signals on how it intends to sustain growth while broadening monetization beyond subscriptions.