Netflix Director Sells $40M Stock; Cramer Backs Shares After $2.8B Fee
Netflix director Reed Hastings sold 410,650 shares for $39.8 million at prices between $96.06 and $97.59 after exercising options costing $4 million, leaving him with 3,940 shares. The company also received a $2.8 billion termination fee and Jim Cramer advised buying shares on balance sheet relief.
1. Reed Hastings Sells $39.8 Million in Shares
Netflix co-founder and board director Reed Hastings sold 410,650 shares at prices between $96.06 and $97.59 per share, generating $39.8 million after exercising options at $9.667 per share. He now holds 3,940 shares directly and over 21 million indirectly through his family trust, plus 643 non-qualified options.
2. $2.8 Billion Termination Fee Strengthens Balance Sheet
Netflix received a $2.8 billion termination fee following withdrawal of its merger agreement with Warner Bros. Discovery, bolstering liquidity and reducing debt concerns. The inflow provides additional funding for content production and strategic initiatives without adding leverage.
3. Jim Cramer Recommends Buying Netflix
Market commentator Jim Cramer said Netflix’s share price did not fully reflect the balance sheet benefits of walking away from the Warner Bros. Discovery deal. He praised management for avoiding overpayment and recommended investors consider buying the stock at current levels.