(Reuters) – Video rental and streaming company Netflix Inc. said late on Monday that it raised $400 million in fresh capital by selling convertible debt to long-time backer Technology Crossover Ventures (TCV) and stock to funds managed by T. Rowe Price.
Netflix has lost about two-thirds of its market value since the company’s shares touched a high of almost $300 in July.
The company, which had $159.2 million in cash and cash equivalents at the end of September, has struggled to renegotiate video content deals. It has also lost subscribers and warned of a first-quarter loss.
The $200 million note sale and the $200 million stock sale will help the company replenish its war chest.
When Netflix Chief Executive Reed Hastings “said, ‘Hey, I’m going to double content spend in 2012,’ we couldn’t see how it could happen,” UBS analyst Brian Fitzgerald told …