Netflix co-founder Reed Hastings stepped down as CEO this week, stating: “The board and I believe it’s the right time.”
Hastings stepped down as chief of the online streaming service, handing control over to his longtime colleague and co-CEO, Ted Sarandos, and his COO, Greg Peters, Reuters reported.
The co-founder decided to step down as Netflix made a recovery in the last quarter of the year, following millions of dollars in losses in 2022.The streaming video service was facing pressure after it lost customers in the first half of 2022, with its share value losing 38 percent for the entire year. A massive stock plunge last April 2022 occurred at the start of the second quarter, after it reported its first subscriber loss in more than a decade.
Since then, Netflix has seen a recovery in subscribers, which exceeded expectations in its 2022 fourth-quarter earnings report, released on Jan. 19.
About 18 brokerages raised their price targets on the stock as they rallied to Netflix’s 7.66 million new subscribers, greatly beating estimates of 4.57 million, reported Reuters.
