It's the End of the Reed Hastings Era at Netflix

Netflix's co-founder is making his exit from the boardroom after nearly 30 years at the company that helped kill the video store, the Wall Street Journal reports. Reed Hastings will leave Netflix's board when his term ends in June, the streamer said Thursday, with the 65-year-old planning to shift his energy to philanthropy and other roles, including board seats at Bloomberg and AI firm Anthropic. Hastings, who co-founded Netflix in 1997, oversaw its evolution from DVD mailer to global streaming heavyweight. He took over as CEO from co-founder Marc Randolph in 1999 and remained in that role until 2023, ABC News reports. In a letter to shareholders, he thanked co-CEOs Ted Sarandos and Greg Peters, "whose commitment to Netflix's greatness is so strong that I can now focus on new things."

Reuters decrees this "an inopportune time" for Hastings' departure, given that Netflix's recent attempt to purchase Warner Bros. Discovery fell through. News of his exit landed alongside first-quarter earnings that rattled investors. Netflix shares sank more than 8% in after-hours trading after the company issued weaker-than-expected guidance and projected slimmer operating margins for the second quarter, even as full-year guidance stayed intact. Results for the quarter were robust: revenue climbed 16% to $12.25 billion, net income jumped nearly 83% to $5.28 billion, and earnings per share got a lift from a $2.8 billion breakup fee tied to the collapsed Warner Bros. Discovery deal. Netflix pointed to subscriber gains, price hikes, and its growing ad tier—with help from hits like Bridgerton and One Piece—as key drivers.