Online content provider Netflix has announced it will be taking on US$400m in debt to fund what it sees as a means of competing with the likes of HBO in the US.
In its statement, Netflix said the money was “for general corporate purposes, including capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”
These general corporate purposes are no doubt the plans it laid out in its fourth-quarter review 2013, when the company’s CEO, Reed Hastings, laid out plans for 2014. “We plan later this year to embark on a substantial European expansion. Our success this year in international net additions and shrinking contribution losses confirms our belief that there is a big international opportunity for Netflix.”
Currently, Netflix is only available in Europe in the UK, Ireland and Scandinavia, and but will now be looking to move into the larger European market.
The company has been making considerable strides with its self-produced content, with shows like House of Cards, Orange Is the New Black and Hemlock Grove winning major awards and critical acclaim.
Series 2 of House of Cards is due for release on 14 February.