Netflix to Buy Back $100 Million in Stock
Netflix issued a press release to announce that they will be buying back $100 million in stock in 2008.
Stock repurchases under this program may be made through open market transactions and, from time to time, privately negotiated transactions with third parties, and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, alternative investment opportunities and other market conditions. Repurchased shares would be returned to the status of authorized but un-issued shares of common stock.
Uh, why doesn't Netflix just buy shares that their CEO sells directly and just cut out the middleman?
http://biz.yahoo.com/ap/080118/netflix_insider_transactions.html?.v=1
Posted by: Edward R Murrow | January 31, 2008 at 03:26 PM
edward, your rant is getting a little tired. seriously, edward, why don't you get a life or watch one of your netflix movies? you should check out eastern promises -- it looked great on hd dvd.
anyways, netflix is stock is moving up today (about $2 to $25 or about 9%). a lot of that is due to it just being an upmarket day in general (dow up 200), but netflix kept going up after announcing the $100 million buyback. why didn't they announce this at their 4th quarter earnings call just over a week ago?
http://finance.yahoo.com/q?s=NFLX
http://www.seekingalpha.com/article/61343-netflix-inc-q4-2007-earnings-call-transcript
Posted by: leonardodicrapio | January 31, 2008 at 03:52 PM
Let's see, Edward, if he sells 10K shares a month, at today's stock price, it will take about 400 months, or just over 33 years. This plan is crazy enough that it JUST MIGHT WORK!
Posted by: Shawn | January 31, 2008 at 04:01 PM
It means Netflix thinks that their stock is underpriced.
Posted by: usersss | January 31, 2008 at 04:03 PM
"edward, your rant is getting a little tired"
It's a goof, get a sense of humor. Unless it's a little close to home and I somehow insulted your boss/boyfriend?
Posted by: Edward R Murrow | January 31, 2008 at 04:36 PM
If you were CEO you, too, would sell your stocks to enjoy your wealth. DUH.
Posted by: ceo seller | January 31, 2008 at 04:42 PM
I doubt you got a single laugh, Ed, aside from your own. You've been trolling here for a long long time now.
Posted by: NetflixShill | January 31, 2008 at 05:43 PM
"It's a goof, get a sense of humor. Unless it's a little close to home and I somehow insulted your boss/boyfriend?"
Nice try but, due to your posting history, no one is buying this.
Posted by: superfunhappy | February 01, 2008 at 12:07 AM
the ed stuff is getting old. move on to another "sacred cow" ed, you contribute nothing, and your sad attempts at humor do nothing but show your bias and ineptitude.
Posted by: yawn | February 01, 2008 at 01:10 AM
Don't feed the troll. Feeding him only makes him "goof" more, and we all know how unpleasant that can be.
Posted by: Gir | February 01, 2008 at 03:43 AM
no... this ed guy has been here for years, ignoring won't make him go away. so let's be straight about this... he is an ass and needs to be called out as one.
Posted by: yawn | February 01, 2008 at 08:55 AM
Lemmings, I had no idea that offering ideas different than everyone else's was trolling.
http://www.youtube.com/watch?v=PYP1Tjgt1Ao
BTW, I'm the last guy in the line in this video who actually lifts the blindfold.
"I doubt you got a single laugh, Ed, aside from your own. You've been trolling here for a long long time now"
I love the irony of getting taken to the woodshed by someone named "NetflixShill". Is the irony lost on everyone but me? You just can't make this Koolaid drinker sh!t up!
Posted by: Edward R Murrow | February 01, 2008 at 10:40 AM
wow, imagine that... more boring crap from ed the asshat.
Posted by: yawn | February 01, 2008 at 11:23 AM
The real Edward Murrow would be disgraced by your "Fair and Balanced" ideas. If you can even call them ideas. You simply post that Reed Hastings sells stock every week. So what?
We enjoy watching movies through Netflix. You enjoy complaining about Netflix. Seriously, watch a movie or get outside for a change. Anyways, I'm tired of your tedium. Maybe I'll pop back in March.
Posted by: leonardodicrapio | February 01, 2008 at 11:24 AM
"this ed guy has been here for years"
Yes, but arguing with him only makes it worse (case in point).
Why do you think he posts his little "goofs" in the first place? Does he really think they're Ha Ha funny, or is he baiting hoping to get a rise out of someone?
Don't play into his game. Minimize the amount of "goofin" the rest of us have to suffer through. Just ignore him.
Posted by: Gir | February 01, 2008 at 11:25 AM
if he would eventually dry up and blow away, then sure, I'd take the higher ground and ignore his baiting, but honestly, I don't think he'll ever stop. he is either on a payroll to perform this function, or he has a pathetic personal life and has no other outlet besides message board trolling. I mean seriously, years of this crap is more than enough. can someone write a script to hide his posts or something? I'd LOVE that.
Posted by: yawn | February 01, 2008 at 02:33 PM
That would be nice, wouldn't it. I've often wished for a kill filter here.
Posted by: Gir | February 01, 2008 at 03:45 PM
I went to view comments on how people here view the effect a buyback has on a stock. What I scanned were 18 or so little debates on this "Ed" person.
Seems all these people enjoy wasting others time.
Too bad, there are some good comments here from time to time.
Posted by: Smits | February 01, 2008 at 06:56 PM
I totally agree with Smits. Most of the time, people here try to attack others rather than comment on articles that have been posted.
But I do have to agree that people ARE right about Edward R. Murrow. Although everybody attacks each other from time to time, I believe his main reason for even visiting this website is to do just THAT. Just like Leonardo Di Caprio said, go watch a movie or something and stop trying to waste people's time with your insults and smart remarks. "Eastern Promises" is in fact good, check it out. But for some reason, I think that whatever is being said to you right now, including my comment, won't be getting through to your thick head any time soon. Well have a good weekend nonetheless.
Posted by: Sparkles | February 01, 2008 at 08:29 PM
Getting back on topic - stock buy-back is all the rage now a days. If you have a lot of surplus cash, and think your stock is undervalued, then you buy it back. Wall Street says "Wow" and raises the price of your stock - thus making your stockholders (i.e. your insiders who have stock options to exercise) quite happy.
IMHO, the better move is to invest in the company future rather than play financial games - but hey, NF is run by entrepreneurs.
Posted by: CJ | February 01, 2008 at 09:59 PM
"IMHO, the better move is to invest in the company future rather than play financial games - but hey, NF is run by entrepreneurs."
Agreed, but I think NF is doing that (investing in the future) in looking at automatic equipment to speed processing, increase business and possibly be able to lower prices as a result. Who knows, maybe even preferential shipping will become a thing of the past.
As to playing the financial games, yeah, they're doing that, too. But as long as they keep looking for ways to improve their service, I'm not going to complain.
Posted by: Old Timer Too | February 02, 2008 at 11:30 AM
http://www.netflix.com/AllNewReleases?lnkctr=NavAllNewReleases
A bunch of suck is being released this week. Only good film being released is Great World of Sound.
Posted by: Plus | February 03, 2008 at 03:44 PM
"Getting back on topic - stock buy-back is all the rage now a days. If you have a lot of surplus cash, and think your stock is undervalued, then you buy it back. Wall Street says 'Wow' and raises the price of your stock - thus making your stockholders (i.e. your insiders who have stock options to exercise) quite happy.
IMHO, the better move is to invest in the company future rather than play financial games - but hey, NF is run by entrepreneurs."
Whoops, I came back again this month. Hopefully this time I will be gone again until next month (March).
Netflix sold about $105 million in stock almost two years ago to fund the purchase of downloadable (streamable) content for its WatchNow/WatchInstantly/WatchWhateverItsCalled Now. Netflix have since said that they were overly cautious and didn't need all this money, and a $100 million buyback was announced last year, too.
"April 18, 2007
Today’s earnings release announced a program to buy back $100 million in Netflix stock."
http://seekingalpha.com/article/32729-netflix-q1-2007-earnings-call-transcript?page=4
Netflix also probably issues stock options to its employs. So buying back stock does help/prevent the dilution of the stock because of employee stock options.
"May 17, 2006
What's more, it's not as if Netflix is ignoring the potential in video downloads. The company has already said it plans to be a player in this market. And following last month's earnings report, Netflix announced that it was going to sell 3.5 million shares at $30 a share in a secondary offering.
Tony Wible, an analyst with Citigroup, wrote in a report that Netflix doesn't necessarily have a pressing need for the $105 million it will raise from the offering since the company already has $228 million in cash and no debt. So he believes that Netflix is probably selling more stock in order to help finance the roll-out of its own video download service."
http://money.cnn.com/2006/05/17/commentary/mediabiz/index.htm
Posted by: leonardodicrapio | February 04, 2008 at 11:46 AM