Netflix Shares Plunge as Co-Founder Reed Hastings Retires

Netflix shares fell by more than nine percent on Thursday. This happened because the company’s earnings report did not satisfy investors, and co-founder Reed Hastings announced he would leave the company.

Hastings helped turn Netflix from a DVD rental service into a major entertainment company. He will leave to focus on philanthropy and other interests when his term ends in June. He gave daily control of Netflix to co-CEOs Greg Peters and Ted Sarandos earlier this year.

Netflix faces strong competition from other streaming services and short videos on platforms like TikTok. The company, based in Los Gatos, California, reported a quarterly revenue of $12.25 billion, which was slightly more than expected. However, its profit of $5.28 billion surprised investors due to a large payment received when a deal to buy Warner Bros. Discovery was cancelled.

Netflix will not pursue the Warner Bros. deal further. This decision could allow Paramount to take control of Warner Bros., which includes CNN. Analysts believe Netflix might use the money saved from this decision to invest in new shows and advertising, which are becoming increasingly important. The company also had success with the recent World Baseball Classic, which was very popular in Japan.

How much do you know?

What percentage did Netflix shares fall on Thursday?

5%

7%

9%

11%

Who is the co-founder of Netflix that announced he would leave the company?

Ted Sarandos

Greg Peters

Reed Hastings

Bob Iger

What was Netflix's quarterly revenue reported?

$10 billion

$11.5 billion

$12.25 billion

$15 billion

When will Reed Hastings leave Netflix to focus on philanthropy?

May

June

July

August

Which streaming service is mentioned as a competitor to Netflix?

Hulu

Amazon Prime

Disney+

TikTok

What is the name of the company Netflix will not pursue a deal with?

Warner Bros.

Paramount

Sony

NBCUniversal

Netflix shares fell by less than nine percent on Thursday.

True False

Reed Hastings plans to leave Netflix to pursue philanthropy.

True False

Netflix reported higher profit due to a large payment from a canceled deal.

True False

Greg Peters and Ted Sarandos took full control of Netflix only last month.

True False

Netflix had success with the recent World Baseball Classic.

True False

Analysts believe Netflix will invest saved money into new shows.

True False

Reed Hastings will leave Netflix to focus on philanthropy in .

Netflix's reported profit of $5.28 billion surprised investors due to a large payment received when a deal to buy was cancelled.

Netflix is based in , California.

Netflix shares fell by more than nine percent on Thursday due to an unsatisfactory report.

The World Baseball Classic was very popular in .

Netflix's quarterly revenue was reported at $12.25 billion, which was slightly more than .

This question is required