Netflix seeks to raise at least $400 million

[November 22, 2011]  SAN FRANCISCO (AP) -- Video subscription service Netflix hopes to raise at least $400 million as it tries to recover from a customer backlash that has battered its stock and tarnished its brand.

The fundraising appeared to rattle some investors still worried about Netflix's ability to recover from a crisis triggered by management's decision to raise its U.S. prices by as much as 60 percent in September.

Netflix shares fell $1.22, or 1.6 percent, to $73.25 in Monday's extended trading after the company disclosed its plans in regulatory filings. They'd already lost $3.59, or 4.6 percent, in regular trading.

The company plans to issue $200 million in convertible notes to Technology Crossover Ventures, among its biggest stockholders. The offering is contingent on Netflix selling at least $200 million of its stock by Nov. 28.

[Associated Press]

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.