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Usually if you’re making money in other areas you tend to keep your focus in those areas in relation to the cost and profit margins unless you’re a company with no debt and can freely move money. I don’t DAZN is in that spot and I don’t think they’ll be there to support the US economy for sports long term bc of the giant players already in this market. Disney has way more money, Netflix has no debt (I believe) amazon also has no debt. I think they realized they over spent and are just leveraging some assets to get some more money to upkeep.
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What are you talking about Netflix is in major debt and still keeps taking out more money to invest in more content. And the plan to sell Perform was made a year ago as the billionaire owner is selling off Perform because he wants to be in the Sports Streaming business was reported last Oct after they renamed the Controlling Group to DAZN. The money is NOT for upkeep or losses it's for expanding to new countries and to buy MORE sports content.
Netflix Plans to Raise $2 Billion in New Debt to Fund
October 22, 2018 6:35AM
Netflix is again going to debt markets to fund its enormous appetite for content, announcing plans Monday to raise $2 billion in financing through debt securities.
As of Sept. 30, 2018, Netflix reported $8.34 billion in long-term debt, up 71% from $4.89 billion a year prior. The latest proposed debt offering is the sixth time in less than four years that the company is raising $1 billion or more through bonds.
On Monday, Moody’s Investors Service assigned a “Ba3” junk-bond rating to Netflix’s proposed offering, indicating a non-investment grade “speculative” security. The outlook for Netflix remains “stable,” according to Moody’s, which “reflects our expectation that Netflix’s operating results will improve gradually and the company will de-lever through revenue, EBITDA and margin growth.”
Netflix continues to burn cash — and, as it has repeatedly told investors, that will continue for at least another year. Netflix’s free cash flow in Q3 was -$859 million (compared with -$465 million in the year-earlier quarter). For full year 2018, the company expects free cash flow will be closer to -$3 billion than to -$4 billion, and that negative free cash flow in 2019 will be roughly flat with this year.
In addition to its rising debt load, Netflix has billions in off-balance-sheet content-spending obligations mostly due within the next five years. As of Sept. 30, 2018, the company had $18.6 billion of obligations, which includes $10.2 billion due in one year or beyond.
“We recognize we are making huge cash investments in content, and we want to assure our investors that we have the same high confidence in the underlying economics as our cash investments in the past,” Netflix said in its Oct. 16 letter to shareholders. “These investments we see as very likely to help us to keep our revenue and operating profits growing for a very long time ahead.”
According to Netflix, for the $2 billion in new debt (the principal amount which may change), the interest rate, redemption provisions, maturity date and other terms will be determined by negotiations between the company and the initial purchasers.Comment
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CBS 14.5 Billion, Fox 31 Billion, Time Warner 31 Billion, Disney 60 Billion, Comcast 84 Billion.
That is like the 5 main players in US sports right now and what their company's produce on a yearly basis on revenue. DAZN is talking about millions which is chump change in US sports media, and selling an analytics business would probably not bring in 1 billion.
This is not including other deep pockets that may want to get in like Netflix, Amazon or whoever else who all are talking billions.
To me a move like this is something to make the company look better to get taken out by one of the above brands. DAZN doesn't exist in 5 years in the US either they pull out and focus on worldwide which they can make money at or it gets swallowed whole, even the name DAZN screams something that is hastily thought of and won't matter because it will not last it is a place holder until someone else puts their name on it.Comment
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Then let’s remove Netflix.
What are you talking about Netflix is in major debt and still keeps taking out more money to invest in more content. And the plan to sell Perform was made a year ago as the billionaire owner is selling off Perform because he wants to be in the Sports Streaming business was reported last Oct after they renamed the Controlling Group to DAZN. The money is NOT for upkeep or losses it's for expanding to new countries and to buy MORE sports content.
Netflix Plans to Raise $2 Billion in New Debt to Fund
October 22, 2018 6:35AM
Netflix is again going to debt markets to fund its enormous appetite for content, announcing plans Monday to raise $2 billion in financing through debt securities.
As of Sept. 30, 2018, Netflix reported $8.34 billion in long-term debt, up 71% from $4.89 billion a year prior. The latest proposed debt offering is the sixth time in less than four years that the company is raising $1 billion or more through bonds.
On Monday, Moody’s Investors Service assigned a “Ba3” junk-bond rating to Netflix’s proposed offering, indicating a non-investment grade “speculative” security. The outlook for Netflix remains “stable,” according to Moody’s, which “reflects our expectation that Netflix’s operating results will improve gradually and the company will de-lever through revenue, EBITDA and margin growth.”
Netflix continues to burn cash — and, as it has repeatedly told investors, that will continue for at least another year. Netflix’s free cash flow in Q3 was -$859 million (compared with -$465 million in the year-earlier quarter). For full year 2018, the company expects free cash flow will be closer to -$3 billion than to -$4 billion, and that negative free cash flow in 2019 will be roughly flat with this year.
In addition to its rising debt load, Netflix has billions in off-balance-sheet content-spending obligations mostly due within the next five years. As of Sept. 30, 2018, the company had $18.6 billion of obligations, which includes $10.2 billion due in one year or beyond.
“We recognize we are making huge cash investments in content, and we want to assure our investors that we have the same high confidence in the underlying economics as our cash investments in the past,” Netflix said in its Oct. 16 letter to shareholders. “These investments we see as very likely to help us to keep our revenue and operating profits growing for a very long time ahead.”
According to Netflix, for the $2 billion in new debt (the principal amount which may change), the interest rate, redemption provisions, maturity date and other terms will be determined by negotiations between the company and the initial purchasers.Comment
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Basically this. I think many people outside the US are expecting dDAZN to make a splash in the US main sports market don’t realize it cost major networks 10x what Hearn got for his budget in the span time span. Then exclusive contracts come in. That also is a huge cost bc other platforms are hardly going to individual en******, they just prefer to get everyone and pay them 10x more collectively.Comment
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When a skysc****r is built, how many years does it take to replenish its cost with leasing to companies?
Again, it amazes me how PBC shills are able to convince boxing fans that DAZN has already given a lump sum amount to all its contractors in GBP and Matchroom etc.. just for boxing. Canelo's 365 deal is spread out.
DAZN isn't even phased by any of this. Risk management involves building a brand, and DAZN have done it nicely, not conservatively. It's been translated as a failure. Not even close, it's growing every week. lolComment
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