Netflix co-founder Reed Hastings steps down as CEO amid record subscriber growth

20 Jan 2023 , 09:50 AM

Netflix Inc co-founder Reed Hastings announced his resignation as CEO on Thursday, handing over the streaming service to longtime partner and co-CEO Ted Sarandos and the company’s chief operating officer, Greg Peters.

Shares of the streaming video pioneer rose 6.1% to $335.05 in after-hours trading, after falling nearly 38% in the previous year, as the company picked up more subscribers than expected at the end of last year.

Hastings will serve as executive chairman, while Sarandos and Peters will share the title of CEO. The change takes effect immediately and is the result of a decade of succession planning by the board. Both Peters and Sarandos were promoted in July 2020, during a difficult period for the company.

Hastings stepped down as Netflix reported 7.66 million new subscribers in the fourth quarter, exceeding Wall Street expectations of 4.57 million, thanks to ‘Harry & Meghan’ and ‘Wednesday’ in the battle to attract streaming television viewers.

Earnings per share, on the other hand, came in at 12 cents, well below the 45 cents expected by Refinitiv analysts polled. Netflix anticipates ‘modest’ subscriber growth through March. It anticipates a 4% year-over-year increase in revenue during the period, thanks to new revenue streams.

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