Thursday, November 17, 2011

T2 Partners on NFLX

Via Neo-Alpha, T2 Partners have given brief reasons for being long NFLX. They compare the balance sheet but only mention the contract obligations as necessary for growth. They cite 166million net cash and 201million fcf as strong positions, but this is up against these streaming content obligations:

Less than one year


$ 740.8

Due after one year and through 3 years



2,136.9

Due after 3 years and through 5 years



535.7

Due after 5 years



45.5





Total streaming content obligations


$ 3,458.9

These are up massively compared to prior periods.

Hey, maybe they'll pull it off. I hope they do, I had a great experience as a customer. I agree it looks good from a takeover perspective. But I wouldn't call that a strong balance sheet. (ok so technically it's off balance sheet...)

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