Hastings, 65, will not seek re-election at June annual meeting to focus on philanthropy. Stock fell 8-9% on the announcement.
8:51 AM
Netflix co-founder and Chairman Reed Hastings announced Thursday that he will step down from the company he founded nearly 30 years ago, declining to stand for re-election at the annual shareholder meeting in June.
Hastings, 65, said in a statement that he plans to focus on philanthropy and other pursuits. In a farewell message, he reflected on his tenure: "Netflix changed my life in so many ways, and my all-time favourite memory was January 2016, when we enabled nearly the entire planet to enjoy our service."
The announcement came as Netflix released its first-quarter 2026 results, which showed a 16% increase in revenue. The company reported earnings per share of $1.23, well above Wall Street expectations of $0.76. The stronger-than-expected results were driven by higher membership prices and increased advertising revenue on the platform.
The quarter's performance was bolstered by a $2.8 billion termination fee Netflix received from Paramount after the collapse of its proposed $72 billion merger with Warner Bros Discovery. That deal fell through in February. Netflix said in its shareholder letter that acquiring Warner Bros "would have been a good accelerator for our strategy, but only at the right price."
Despite the strong quarterly results, Netflix's stock plunged approximately 8 to 9 percent following the announcement of Hastings' departure. The company forecast earnings per share in the current quarter below analyst expectations and quarterly revenue growth that is the slowest in a year, according to LSEG data.
Chief Executive Ted Sarandos commented on the failed merger bid, stating the company remains focused on its existing strategy to entertain the world by providing movies and series across many tastes, cultures and languages. Netflix maintained its full-year outlook unchanged.
Hastings is credited with revolutionizing how movies and television shows are delivered to homes, fundamentally upending Hollywood's traditional business model. He oversaw Netflix's evolution from a postal DVD rental subscription service to a streaming entertainment giant that now has a valuation of $450 billion and produces its own original content.
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