Netflix stock gets a boost from Netflix, but not in the way you think
When Netflix’s stock surged last year, it had more than doubled its market cap.
It had a market capitalization of $8.7 billion, but that didn’t mean that it had the most valuable shares on the market.
In fact, it didn’t have a single share of Netflix that was worth more than $100 million.
It was still far from the $250 billion valuation Netflix was set to reach by the end of 2020.
And the stock’s market cap wasn’t even $10 billion.
This was thanks in part to a recent lawsuit brought by the streaming service against former Chairman and CEO Reed Hastings and other executives.
It included a request for $75 million in damages and $250 million in punitive damages.
Netflix said that the lawsuit was based on false, defamatory statements and a conspiracy to defraud the public.
The company said that Hastings was fired for “negligent acts” and that the allegations in the lawsuit were “false and defamative.”
Netflix said in a statement that it disagreed with the decision and that it was “pleased to have settled with Reed Hastings for $7.5 million.”
But in court documents, Netflix said the $7 million payment was “just an example of the kind of settlement we are willing to pay.”
“In fact, Netflix has been paying out in settlements for years.
And in our view, the lawsuit against Reed Hastings was just one example of why it would be unconscionable for Reed Hastings to continue to pursue litigation against us,” the company said in court papers.
Netflix was not the only company that had filed suit against Hastings.
Google had sued him as well, alleging that he defrauded its investors in the company’s failed IPO.
In a statement to TechCrunch, a Google spokesperson said that Netflix was the “only company that is suing Reed Hastings,” and that they were “pleading the right amount of money for what they believe is an unjust settlement.”
Netflix has a number of other legal battles ahead, including one with Time Warner Cable.