Netflix files for IPO to raise $86 million

This morning we got news in that one of DVD Review’s long-time advertisers, Inc. has filed for an Initial Public Offering (IPO) to raise more than $86 million. Let’s hope they will channel some of that money our way, shall we?

The Los Gatos, Calif.-based company plans to use the net proceeds for general corporate purposes, including working capital, capital expenditures, sales and marketing efforts and potential acquisitions. NetFlix has applied for a Nasdaq listing under the symbol NFLX, and the underwriters are Deutsche Banc Alex Brown, SG Cowen and U.S. Bancorp Piper Jaffray, according to a filing with the Securities and Exchange Commission.

The preliminary SEC prospectus did not disclose how many common shares were being offered to the public, the price range and other details, which are all expected in future filings. NetFlix has a Personal Movie Finder database where subscribers can post their personal ratings. Since February it has collected more than 8.9 million ratings from about 132,000 people. The company also markets movies directly through e-mail and banner ads based on the movie tastes of its users, and NetFlix plans to offer this service to movie studios to promote new releases.

The company currently generates most of its revenues from a subscription service for the online rental of digital video discs (DVDs). The service offers an unlimited number of DVD rentals with no due dates or late fees for between $15.95-$19.95 per month. As of March 31, 2000, NetFlix had over 120,000 paying subscribers for the service.

Leave a comment