Netflix shareholders have voted “yes” to a massive increase in the number of shares that the company is authorized to issue, which is probably the initial step toward a stock split. Netflix CEO Reed Hastings, during an annual meeting, said management is looking to get approval from the board of directors “in due course” to take ahead a split.
Split to make Netflix stock more accessible
Netflix garnered approval to raise its share authorization by approximately 30 times to 5 billion shares from 170 million. A few months ago, Hastings revealed plans to recommend a stock split to the board. A split, according to the CEO, would make Netflix stock more accessible to investors
Also shareholders agreed to non-binding proposals to elect board members annually, to win through a simple majority vote for all measures, and to increase their ability to nominate directors.
Two-pronged strategy winning investors’ confidence
Netflix is aiming at international expansion as its growth rate in the U.S. slows. The online streaming company is looking to spread globally to about 200 countries toward the end of 2016. A few days ago, the company reaffirmed its expansion plans in Italy, Spain and Portugal.
Investors are bullish on the stock, impressed by the company’s two-pronged strategy of taking over top content and expanding globally. Netflix’s latest success is acquiring the distribution rights to Brad Pitt’s War Machine, a satirical comedy directed by David Michod and based on Michael Hastings’ book The Wild and Terrifying Inside Story of America’s War in Afghanistan.
To date, Pitt‘s movie is the biggest film acquisition by the company, which has previously bagged deals with Weinstein Co. for the sequel to Crouching Tiger, Hidden Dragon and an agreement with Adam Sandler for four original movies. Also the streaming company recently announced new TV rights acquisitions, including Fuller House and Degrassi: Next Class.
On the NASDAQ 100, the streaming company has been the top performer, and its shares recently touched a record high of $645.54 during trading. This year, the stock spiked around 86%, and the company stands with a market cap of approximately $40 billion, making it even more valuable than Yahoo, Dish Network, T-Mobile, CBS or Twitter. On Tuesday, Netflix shares closed up 3.18% at $647.15.