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Netflix co-founder Reed Hastings is stepping aside as CEO of the company he’s led for more than two decades, leaving the position to his two longtime associates, Ted Sarandos and Greg Peters.
Sarandos, who was already co-CEO, is the company’s public face in Hollywood while Peters, previously chief operating officer, has overseen its product development and push into advertising. Hastings, 62, will serve as executive chairman of the company. “Our board has been discussing succession planningfor many years (even founders need to evolve!),” Hastings said in a blog post. “The board and I believe it’s the right time to complete my succession. ”
Doug Anmuth, an analyst at JPMorgan Chase, said in a research note that he expects a “seamless transition” to new leadership and for Hastings to “remain very close to the company in terms of strategy & important product decisions. ”
Netflix ended the year on a high note. The company added 7. 7 million subscribers in the final quarter of 2022,easily topping the 4. 5 million average estimate of Wall Street analysts. Revenue, at $7. 9 billion, was in line with estimates. Although its earnings, at 12 cents per share, fell well below the same period a year ago, the company forecast that its profit margin and free cash flow would improve in the year ahead.
The stock rose about 7% in premarket trading on Friday. Shares of Paramount Global, Walt Disney and Warner Bros Discovery also rose at least 1%, although some on Wall Street cautioned about extrapolating broader trends for streaming services.
Sarandos, who was already co-CEO, is the company’s public face in Hollywood while Peters, previously chief operating officer, has overseen its product development and push into advertising. Hastings, 62, will serve as executive chairman of the company. “Our board has been discussing succession planningfor many years (even founders need to evolve!),” Hastings said in a blog post. “The board and I believe it’s the right time to complete my succession. ”
Doug Anmuth, an analyst at JPMorgan Chase, said in a research note that he expects a “seamless transition” to new leadership and for Hastings to “remain very close to the company in terms of strategy & important product decisions. ”
Netflix ended the year on a high note. The company added 7. 7 million subscribers in the final quarter of 2022,easily topping the 4. 5 million average estimate of Wall Street analysts. Revenue, at $7. 9 billion, was in line with estimates. Although its earnings, at 12 cents per share, fell well below the same period a year ago, the company forecast that its profit margin and free cash flow would improve in the year ahead.
The stock rose about 7% in premarket trading on Friday. Shares of Paramount Global, Walt Disney and Warner Bros Discovery also rose at least 1%, although some on Wall Street cautioned about extrapolating broader trends for streaming services.
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