Netflix

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Date- October 26, 2009

Presented to- Reed Hastings CEO and Chairman Netflix, Inc.
Barry McCarthy Chief fiscal Officer

Presented by- Javier Delgado University of Illinois Consultant

Strategic objectives-

Netflix, Inc., an internet retailer offering online rentals of DVDs via direct mail and incorporated in 1997, has asked us to discerp weather they should proceed with their scheduled Initial Public crack ( initial public offering) later this socio-economic class (2000). If not, then when and under what circumstances. Factors that we have analyse to de endpointine feasibility include the market shoot for initial public offeringS, short- term and long-term cash flow projections, financing needs, measure constraints, and micro-economic factors. In addition, we will look at the long term viability of the comp whatsoever.

Executive Summary-

We began our analysis by first assessing the current note; current climate for IPOS and Netflixs pecuniary picture. The market is such that demand for internet based IPOS have crashed to a halt. The demise of umpteen gritty profile internet start-ups has led many investors and banks to head for the exits.



The demand for investing in internet companies has definitely exceeded supply the conclusion five years. This led to over market capitalization of many internet companies who neer made a profit. Venture capitalists and banks were patronage and absorbing the short-term and sunk costs, with the hope of recouping their initial enthronement in the long term. However, this neer materialized, because these start-ups never made any money. Their total costs always exceeded their total revenue. There was never an economic equilibrium with these internet start-ups, because supply never equaled demand. Everyone had a great business plan on paper, but never executed it successfully.

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