Netflix cofounder Hastings to step down after it lost Warner Bros deal

The company’s stock plunged about 8 percent on the news of Hastings’s departure.Netflix Chairman Reed Hastings is leaving the streaming service he cofounded 29 years ago as the company regains its footing after it lost its $72bn deal for Warner Bros Discovery to Paramount Skydance.In a letter to investors released on Thursday, Netflix said Hastings will not stand for re-election at its annual meeting in June and plans to focus on philanthropy and other pursuits.Recommended Stories list of 4 itemslist 1 of 4Lionel Messi buys Barcelona-based Spanish football club Cornellalist 2 of 4Cuban president defiant amid US pressure and energy blockade threatslist 3 of 4More than $5 trillion in US taxes. Who gets it?list 4 of 4Ex-NBA player Damon Jones to be first to plead guilty in US gambling caseend of listThe company’s stock plunged about 8 percent on the news of Hastings’s departure. The cofounder is credited with helping to revolutionise how movies and television shows are delivered in homes, upending Hollywood’s business model.“Netflix is growing revenues double-digits, expanding margins in 2026 and gushing free cash flow,” said LightShed Partners media analyst Richard Greenfield. “While the Q1 was uneventful financially, the departure of Reed Hastings has spooked investors.”Netflix reaffirmed in a 14-page shareholder letter that its mission remains “ambitious and unchanged” – to entertain the world, providing movies and series for many tastes, cultures and languages. The company’s full-year outlook remained unchanged.The company did not say how it plans to spend the $2.8bn termination fee it received after losing the Warner Bros movie studio and HBO, and lifted its earnings per share to $1.23 in the first quarter compared with 66 cents per share in the same quarter last year.Revenue rose to $12.25bn, an increase of 16 percent from the year-ago period, modestly exceeding analyst forecasts of $12.18bn.