netflix

This is something I wrote on 12-23-11 and below is an update
Netflix Company lost 75% of its value or 12 billion dollars and its CEO, Reed Hastings, will retain his $500,000 annual salary but his stock options will be cut in half. His 3 million in options for this year will be reduced to 1.5 million in 2012 a year the company is expected to lose money. This all came about from Hastings decision to raise prices by a whopping 60% in one shot. Netflix stock dropped from $305 to $75 in less than 6 months as 800,000 subscribers left between July and September and more have left since.
Most companies that I am familiar with have a rule that states if you are late three times in any six month period and you have been informed each time of the rule you will be subject to dismissal.
It was announced today that company executives sold stock before they announced the price hike.
The lawsuit also contends that ”company insiders” quietly sold approximately 400,000 shares of Netflix stock for just over $90 million when the stock was nearing $300 a share during mid-July. Specifically, Reed Hastings sold 190,000 shares to collect approximately $43 million.
This is just another example of how unscrupulous individuals are corrupting the free market.