China Securities and Exchange Network News (reporter Xian Xiuli) streaming media giant Naifei said on October 22 in the United States East Time, intends to sell a total of about $2 billion in U.S. dollars and euros bonds. According to CNBC data, as of September 30th, the company's total debt amounted to nearly $12 billion. In October 22nd, nfly shares fell 0.94% to $329.54, up 71.67% from the beginning of this year.
The statement said that the company intends to use the net raised funds for "general corporate purposes" which may include content acquisitions, production and development, capital expenditure, investment, working capital, potential acquisitions and strategic transactions. Zerohedge, a financial blog, said this meant that Nifei would continue to use financing to support large-scale money-burning, prioritizing original TV shows and movies as development goals to maintain growth in new subscribers.
The company's free cash flow for the period was negative $859 million, compared with negative $465 million in the same period last year and is expected to be about negative $3 billion in 2018, according to the company's three-quarter report released last week (Oct. 16, US Eastern Time). In the context of rising interest rates, institutions have been worried about its huge borrowing. David Einhorn, founder of Green Light Capital, has repeatedly said that Neifei naively believes that producing a few high-profile talk shows can make cash flow negative.
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