Netflix Looks for $400 Million Cash Injection

LOS GATOS: Netflix is seeking to raise at least $400 million in stock and convertible bonds in an effort to boost its capital.

$200 million was raised through the sale of common stock, selling off approximately 2.86 million shares. The offering is scheduled to close on or around November 28. The rest was raised through the private placement of convertible notes to funds affiliated with Technology Crossover Ventures (TCV). November 28 is also expected to be the closing date for this part of the deal.

"With this additional capital from two long-term oriented investors, we have strengthened our balance sheet and remain focused on growing our streaming subscriptions and returning to global profitability after our launch of the U.K. in 2012," said David Wells, Netflix’s chief financial officer.

Netflix has reportedly lost close to two-thirds of its market value since July; this summer the company raised its prices and originally planned to split its DVD and streaming businesses, though that move has now been scrapped.