Reed Hastings will step down from the board of Netflix Inc. when his term ends at the annual meeting in June, ending a 29-year-run at the streaming pioneer he co-founded. Hastings, who presently serves as Netflix's chairman, plans to focus on philanthropy and other pursuits, the company said Thursday as it reported first-quarter results.
Hastings' departure may worry investors given his status as one of the great entrepreneurs of the 21st century. Hastings provided the initial capital to start Netflix as a DVD-by-mail service and replaced co-founder Marc Randolph as chief executive officer in 1999. He guided the company through its battle with Blockbuster and was the driving force behind its move into video streaming.
Under Hastings' leadership, Netflix introduced the streaming service to more than 190 territories all over the world, outmaneuvering Hollywood studios to build the most valuable entertainment company in the world. He stepped down as CEO in January 2023, ceding the job to co-CEOs Ted Sarandos and Greg Peters.
“Netflix changed my life in so many ways, Hastings said in a statement. “A special thanks to Greg and Ted, whose commitment to Netflix's greatness is so strong that I can now focus on new things.”
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Netflix disclosed Hastings' departure at the same time it announced its financial results for the first three months of the year. Revenue rose to $12.3 billion, beating analysts' estimates thanks to strong subscriber growth. In the current quarter, Netflix forecast earnings per share of 78 cents, less than the 84 cents predicted by Wall Street analysts.
Shares in Netflix have jumped more than 40% since late February, when the company announced it would not raise its offer for Warner Bros. Discovery Inc. Netflix's bid for Warner Bros. concerned investors, who fretted that it was a sign the company had run out of ideas. The amount of time users spend with Netflix hasn't grown in the last couple of years.
Hastings had always avoided doing major mergers or acquisitions, believing they would damage the culture of the company. Sarandos and Peters felt Warner Bros. was worth the risk, only to pull out when the price got too high.
Sarandos and Peters sought to reassure investors that they remain confident and have plan for the future, outlining three key priorities: delivering more good programming, implementing new technologies and making more money from its members. The company plans to boost its spending on programming this year, which is a big reason its earnings for the current quarter may disappoint.
Among this other interests, Hastings has been developing a ski resort in Utah. He is also a board member of Bloomberg Inc.
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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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