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

Netflix cofounder Reed Hastings is stepping down after 29 years with the company, a move that caused an 8% drop in stock value. Hastings will not seek re-election at the June annual meeting, choosing to focus on philanthropy. His departure comes after Netflix lost a $72 billion deal for Warner Bros Discovery to Paramount Skydance. Despite this setback, Netflix reaffirmed its commitment to its mission and reported a 16% revenue increase to $12.25 billion in the first quarter, exceeding analyst expectations. The company's earnings per share also rose to $1.23, and it received a $2.8 billion termination fee from the lost Warner Bros deal.

Netflix co-founder Reed Hastings will step down from the company's board in June, after 29 years with the streaming service. Hastings, who stepped down as CEO in 2023, plans to focus on philanthropy and other pursuits. The company's stock dropped about 8% on the news. Netflix reaffirmed its commitment to its mission and reported a revenue increase of 16% to $12.25 billion, exceeding analyst forecasts. The company plans to invest in video podcasts, live entertainment, and technology to improve user experience and monetization, aiming for $3 billion in advertising revenue by 2026. Netflix also received a $2.8 billion termination fee after losing a deal to acquire Warner Bros.