netflix co-founder reed hastings is stepping down after more than two decades as the company’s CEO, leaving the position to two of his longtime colleagues, Ted Sarandos And Greg Peters,
Sarandos, already co-CEO, is the company’s public face in Hollywood, while Peters, previously chief operating officer, oversaw its product development and push into advertising. Hastings, 62, will serve as the company’s executive chairman. “Our board has been discussing succession planning for several years (even founders need to evolve!),” hastings said in a blog post. “The board and I believe this is the right time to complete my succession.”
Doug AnmuthAn analyst at JPMorgan Chase said in a research note that he expects a “seamless transition” to the new leadership and for Hastings to “remain very close to the company in terms of strategy and key product decisions.”
Netflix ended the year in a great way. The company will add 7.7 million customers in the final quarter of 2022, easily surpassing Wall Street analysts’ average estimate of 4.5 million. Revenue, at $7. 9 billion, was in line with estimates. Although its earnings, at 12 cents per share, fell significantly below the same period a year earlier, the company anticipates that its profit margin and free cash flow will improve in the year ahead.
The stock climbed nearly 7% in premarket trading on Friday. Shares of Paramount Global, Walt Disney and Warner Bros. Discovery also rose at least 1% each, although some on Wall Street cautioned about extrapolating to broader trends for streaming services.
Sarandos, already co-CEO, is the company’s public face in Hollywood, while Peters, previously chief operating officer, oversaw its product development and push into advertising. Hastings, 62, will serve as the company’s executive chairman. “Our board has been discussing succession planning for several years (even founders need to evolve!),” hastings said in a blog post. “The board and I believe this is the right time to complete my succession.”
Doug AnmuthAn analyst at JPMorgan Chase said in a research note that he expects a “seamless transition” to the new leadership and for Hastings to “remain very close to the company in terms of strategy and key product decisions.”
Netflix ended the year in a great way. The company will add 7.7 million customers in the final quarter of 2022, easily surpassing Wall Street analysts’ average estimate of 4.5 million. Revenue, at $7. 9 billion, was in line with estimates. Although its earnings, at 12 cents per share, fell significantly below the same period a year earlier, the company anticipates that its profit margin and free cash flow will improve in the year ahead.
The stock climbed nearly 7% in premarket trading on Friday. Shares of Paramount Global, Walt Disney and Warner Bros. Discovery also rose at least 1% each, although some on Wall Street cautioned about extrapolating to broader trends for streaming services.