Netflix to Raise More Than $100 Million
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Online DVD rental pioneer Netflix Inc. said it would raise $105 million for its expansion plans by selling an additional 3.5 million shares at $30 each.
The Los Gatos, Calif.-based company said in Securities and Exchange Commission documents that it might use the money to finance acquisitions or to develop new technology to complement its booming rental service. Netflix expects to complete the offering Wednesday, adding to its current cash holdings of $228 million.
In a research note, Citigroup analyst Mark Mahaney predicted that Netflix probably was trying to build a nest egg for a new service that would allow its nearly 5 million subscribers to download movies for immediate viewing instead of having to wait for DVDs to arrive in the mail.
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