Netflix co-founder Reed Hastings makes shock exit, sending shares tumbling

3 1 minute read

Netflix Chairman Reed Hastings Steps Down After 29 Years

Netflix Chairman Reed Hastings, who co-founded the streaming service 29 years ago, has announced his departure. The move comes at a challenging time for the company as it faces slowing sales due to increased competition and the recent collapse of a potential merger with Warner Bros Discovery.

Netflix’s latest financial forecast revealed lower earnings per share than analysts’ expectations and the slowest quarterly revenue growth in a year, causing a 9% drop in the company’s stock value.

Reed Hastings revolutionizing Hollywood — Reed Hastings is credited with revolutionizing how movies and TV shows are delivered, disrupting Hollywood’s traditional business model. Getty Images

Despite Hastings’ departure, Netflix remains committed to its strategy of providing a diverse range of content to entertain global audiences of over 325 million paid members. The company’s co-CEO, Greg Peters, emphasized the potential for further growth into the market.

In a shareholder letter, Netflix outlined its plans to focus on expanding revenue, margins, and free cash flow in 2026. The company received a $2.8 billion termination fee after the failed Warner Bros deal and reported increased earnings per share for the first quarter.

Reed Hastings with a DVD — Reed Hastings holding up a DVD in 2004. Fred Prouser

Netflix’s revenue for the quarter rose to $12.25 billion, exceeding analyst forecasts. The company emphasized future growth areas, including investments in video podcasts, live entertainment, and technology enhancements to improve user experience and monetization.