Netflix Co-Founder Reed is leaving the CEO position of the company he led for more than two decades, leaving the position to two of his longtime associates, Ted Sarandos and Greg Peters.
Sarandos, who served as co-CEO, was the company’s public face in Hollywood while Peters, formerly chief executive, oversaw the company’s product development and advertising push. company. Hastings, 62, will be the company’s executive chairman. “Our board has been discussing succession planning for years (even founders need to grow!)” Hastings said in a blog post. “The Board of Directors and I believe this is the right time to finalize my succession. “
Doug Anmuth, an analyst at JPMorgan Chase, said in a research note that he looks forward to a “seamless transition” to new leadership and for Hastings to “always stand with the company on strategy and decisions important about the product. “
Netflix has ended the year with great success. The company added 7.7 million subscribers in the final quarter of 2022, easily beating Wall Street analysts’ average estimate of 4.5 million. Revenue, at $7. 9 billion, in line with estimates. Although the company’s earnings, at 12 cents per share, are down a lot year-over-year, the company forecasts that margins and free cash flow will improve next year.
Shares were up about 7% in premarket trading on Friday. Shares in Paramount Global, Walt Disney and Warner Bros Discovery also rose at least 1%, though some on Wall Street cautioned against extrapolating broader trends to streaming services.
Sarandos, who served as co-CEO, was the company’s public face in Hollywood while Peters, formerly chief executive, oversaw the company’s product development and advertising push. company. Hastings, 62, will be the company’s executive chairman. “Our board has been discussing succession planning for years (even founders need to grow!)” Hastings said in a blog post. “The Board of Directors and I believe this is the right time to finalize my succession. “
Doug Anmuth, an analyst at JPMorgan Chase, said in a research note that he looks forward to a “seamless transition” to new leadership and for Hastings to “always stand with the company on strategy and decisions important about the product. “
Netflix has ended the year with great success. The company added 7.7 million subscribers in the final quarter of 2022, easily beating Wall Street analysts’ average estimate of 4.5 million. Revenue, at $7. 9 billion, in line with estimates. Although the company’s earnings, at 12 cents per share, are down a lot year-over-year, the company forecasts that margins and free cash flow will improve next year.
Shares were up about 7% in premarket trading on Friday. Shares in Paramount Global, Walt Disney and Warner Bros Discovery also rose at least 1%, though some on Wall Street cautioned against extrapolating broader trends to streaming services.
